During an internal "All Hands" meeting on Thursday the 9th of June, the challenger stockbroking app, Freetrade, announced that it would be implementing redundancies for up to 15% of its staff.
Freetrade today confirmed that it is looking to make up to 15% of staff redundant.
When contacted for comment, a spokesperson from the app stated: "This is a prudent action that is being taken to reduce costs and extend Freetrade’s cash runway. This is being done from a position of strength, following a significant fundraise of £30m."
The company has offered staff the chance to apply for voluntary redundancy, in a bid to reduce the number of compulsory redundancies that may be required.
The internal Slack message sent yesterday by CEO Adam Dodds reads:
"As I announced today at all hands, I’ve reached the difficult conclusion that we need to reduce our headcount.
This is a tough decision. Nobody ever wants to have to do this. It’s essential that we take this action now so that we can put Freetrade in a position to succeed in the short term and the long run."
Dodd’s message to staff continued: "Global stock markets have been falling and funding for businesses like ours has slowed. It’s essential that we focus now, more than ever, on building a sustainable business on a strong financial footing. By taking this difficult step now, we will ensure we can preserve our cash for as long as possible. This is never an easy process and I want to thank all of you for your impact and contribution to our mission.
15% of Freetrade’s approximately 300 staff could mean that up to 45 employees face redundancy.
The onslaught of redundancies which has also hit both Klarna and Curve recently, isn’t touching all players. Revolut currently lists 272 open positions on its website.