12:27:56 PM PDT - Wednesday, August 10th, 2022

Clearco cuts 25% of staff, considers ‘strategic options’ for international operations  

By Editor - Fri Jul 29, 2:31 pm

Clearco , a Toronto-based fintech capital provider for online companies, tells TechCrunch that it has laid off 125 people, or 25% of its entire staff. Those impacted will receive severance pay, a two-year window to exercise equity and job transition support from the leadership team, according to Clearco. The company did not say which teams and roles were impacted, or if any C-suite members were let go. Since launch, the startup, formerly known as Clearbanc, has been built around helping e-commerce businesses land non-dilutive capital, sales and deals. Now, as consumers pull back, e-commerce surge is turning creaky; challenging startups such as Clearco that depend on a constant stream of activity from the cohort. Michele Romanow, Clearco CEO and co-founder, and Andrew D’Souza, co-founder and executive chairman, sent a memo to staff Friday morning citing the macroeconomic environment as reasoning for the latest workforce reduction. “We have rising interest rates not seen since the mid-90s, the highest inflation in four decades, one of the biggest swings in European currency since the founding of the Euro, all compounded with a slowdown in e-commerce growth that’s been well documented and continued supply chain issues for companies of all sizes,” the duo wrote in a memo. Alongside the layoffs, Clearco said that it is “considering strategic options” for its international options.

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Clearco cuts 25% of staff, considers ‘strategic options’ for international operations

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