Israeli online trading platform eToro has announced that it is laying off 6% of its workforce. The company has 1,700 employees, meaning that it is shedding about 100 employees including 55 from its offices in Israel.
eToro has also announced that it has mutually agreed with Betsy Cohen's Fintech Acquisition Corp. V (Nasdaq: FTCV) to terminate their SPAC merger agreement, which had been due to be completed at a company valuation of $8.8 billion.
eToro was founded in 2007 by brothers Yoni and Ronen Assia and David Ring. Yoni Assia serves as CEO. The company's platform allows users to invest in a range of stocks, commodities, indices and cryptocurrencies. Among eToro's rivals is Robinhood, which laid off 9% of its workforce in April and has seen its share price fall 76% since listing on Nasdaq last year.
eToro said, "Due to the current market conditions and after a period of rapid growth, we have decided to take a more balanced approach in the current period between growth and profitability. Accordingly, we have taken the decision to reduce our workforce by 6% in order to ensure long-term sustainable growth. We will provide assistance to those employees who are forced to leave in order to support them in their next career steps.
"Over the past 15 years, we have successfully coped with many market situations and come out of them stronger and more experienced. We are confident in our long-term growth strategy and in the future of eToro. The company continues to operate through its business strength and high financing. Due to our global deployment, and the range of services and products that we offer, and our social network, we are well placed to continue to grow."
Published by Globes, Israel business news - en.globes.co.il - on July 5, 2022.
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