A Tough Decision in the Face of Economic Uncertainty
Clearco, a Toronto-based fintech capital provider for online companies, has made the difficult decision to lay off 125 people, or 25% of its entire staff. This move is a response to the current macroeconomic environment, which has led to rising interest rates, high inflation, and a slowdown in e-commerce growth.
The Reasoning Behind the Layoffs
According to Michele Romanow, Clearco CEO and co-founder, and Andrew D’Souza, co-founder and executive chairman, the company grew its headcount too quickly in anticipation of continued economic growth. However, with the current market conditions being significantly different from those in 2021, this decision has become necessary.
"We were building to match the growth of the economy and now face significant headwinds that simply didn’t exist six months ago," Romanow explained in a statement. "We grew our headcount too quickly in anticipation of continued economic growth and that decision rests on us alone."
Supporting Departing Employees
The company is committed to supporting departing employees through this transition, including providing severance pay, a two-year window to exercise equity, extended health coverage, and job transition support directly from the leadership team.
"Our People team will be working with each departing employee to ensure they are supported through this transition," Romanow said. "Whether you’ve been here for months or years, please know that if not for you and your efforts, there is no way we would have been able to build Clearco into the category leader it is today."
A Commitment to Supporting Entrepreneurs
Clearco’s ethos has always been to support entrepreneurs as they grow and scale, especially those who are unable to access funding historically. Even through a recession, the company remains committed to helping fund as many founders as possible.
"We know we have to do everything we can to support the 10,000+ founders who have taken $5B+ from us, the people who need the capital the most," Romanow emphasized.
A Pivotal Moment in Clearco’s History
This decision marks a pivotal moment in Clearco’s history, as the company has always been known for its resilience and ability to adapt to changing market conditions. Despite the challenges facing the e-commerce sector, Clearco remains committed to supporting entrepreneurs and helping them navigate these uncertain times.
"As painful as today is, it should remind us to move forward with more focus, determination, and purpose than ever," Romanow concluded.
A New Chapter for Clearco
With this decision, Clearco embarks on a new chapter in its history, one that requires focus, determination, and purpose. The company remains committed to supporting entrepreneurs and helping them achieve their growth goals, even in the face of economic uncertainty.
Key Points:
- Clearco has laid off 125 people, or 25% of its entire staff.
- The decision is a response to the current macroeconomic environment, which includes rising interest rates, high inflation, and a slowdown in e-commerce growth.
- The company will provide severance pay, a two-year window to exercise equity, extended health coverage, and job transition support directly from the leadership team.
- Clearco remains committed to supporting entrepreneurs and helping them navigate these uncertain times.
