eToro Cuts 6% of Workforce to Balance Growth and Profitability

eToro, a leading social investment and trading network, has announced that it will take certain cost reduction actions associated with its business, including 6% of workforce reduction.

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It is reported that eToro plans to lay off about 100 employees, half of them come in its headquarters in Israel and the other half in its overseas offices, accounting for 6% around of the company's total workforce. Meanwhile, eToro officially announced the cancellation of its planned merger and listing with special purpose acquisition company (SPAC) FinTech Acquisition Corp V.

Last March, eToro and FinTech Acquisition Corp V initially revealed their plans to merge and go public, subject to certain conditions being met within the time frame specified in the Merger Agreement. Despite the parties' best efforts, such conditions were not satisfied within such time frame and the parties were unable to complete the transaction by the June 30, 2022 deadline.

Before the layoff notice was issued, eToro was actively enriching its offerings and expanding the global market. Last month, eToro was authorized by the Autorité des Marchés Financiers (AMF) to offer cryptocurrency trading services in France. A few days later, the company started accepting new clients in South Africa, further extending its global footprints. Also in June, the broker had added 132 new stocks and 6 new tokens to its platform.

An eToro spokesperson stated: "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."