Wealthsimple is laying off 13% of its staff

Wealthsimple, the Allianz X-backed startup offering a range of financial services, is laying off 159 people – about 13% of its staff.

In May 2021, the Canadian startup, which also has presence in the U.S., signed a ~$610 million financing round at a post-money valuation of ~$4 billion.

In a note sent to employees, CEO and co-founder Michael Katchen writes that many of the company’s clients are living through “a period of market uncertainty they’ve never experienced before.” Here’s some pieces from the letter:

“If you’ve been with us over the past two years, you know it’s been a time of immense volatility. Just about anyone who made predictions about how the pandemic would affect the economy was wrong about one thing or another. The markets crashed. Then they soared. Our business grew at an unprecedented rate, and we have been aggressively building to meet the needs of a wave of new clients since then.

Of course volatility works both ways, and we’re seeing the other side of it now as the pandemic market conditions unwind. Many of our clients are living through a period of market uncertainty they’ve never experienced before. Our first priority has always been to take care of our clients and make sure they’re in the best position for the future, and that’s more vital than ever. It also means we need to concentrate our resources on what’s most important in today’s environment.”