Following current market conditions, eToro will lay off 6% of the total workforce by downsizing 100 employees, 55 of them based in Israel.

Following the termination of the SPAC merger deal, eToro is expected to cut its global workforce by 6%. About 100 employees will be laid off, 55 of them from Israel.

In contrast to other financial firms that have reduced their workforce in recent months, the Israel-based company is pursuing alternative approaches to laying off, such as holding negotiations for a private funding round. It is estimated that the new funding round is between $800 million and $1 billion at a $5 billion valuation.

etoro

Yoni Assia, CEO and Co-Founder of eToro commented that due to current market conditions, the broker decided to take a more balanced approach between growth and profitability. As a result, it is forced to cut the workforce to ensure long-term sustainable growth. eToro also provides an official clarification as follows:

"In light of current market conditions, we have been looking closely at how we manage our costs. After a period of hypergrowth, it is now necessary to take a more balanced approach between growth and profitability.

We have, therefore, taken the difficult decision to reduce our global headcount by approximately 6% to help ensure our sustainable long-term growth. We will provide assistance to the employees leaving us, to support them in the next steps of their careers. Over the past 15 years, eToro has weathered many market cycles, emerging stronger from the experience. Despite the current headwinds, our underlying business remains healthy, our balance sheet is strong, and we are confident in our long-term growth strategy."