Canadian financial technology firm Clearco is shedding more staff, reports revealed this week, as the e-commerce funding platform continues to struggle with downshifting markets.
Clearco is a well-funded machine, having raised several hundred million dollars in recent years across multiple fundraising rounds. However, with a constantly expanding team and ambitious growth plans, the Canadian company was always banking on the future—a future without headwind.
Despite being named to high-momentum lists like Team True North and Technology Fast 50, Toronto-based Clearco trimmed more than 100 workers over the summer, which at the time amounted to a quarter of total staff.
Lamenting high interest rates, high inflation, swings in European currency, and supply chain issues, the fintech recently laid off another 25% of its organization, or roughly five dozen staff.
The continued turbulence has forced some executive shuffling as well.
Dragons’ Den investor and Clearco cofounder Michele Romanow has exited her role as top dog to be replaced by incoming Andrew Curtis, who will take over as chief executive. Romanow says she will remain with Clearco in her new role as co-executive chairman.
The new CEO informed BNN Bloomberg that Clearco is still able to service its debts amidst growing financial concerns from the public. He does, however, want his company to raise more capital.
“We have a plan for profitability,” Curtis told Bloomberg, “so we may be taking on additional capital raises,” adding that Clearco has “very strong liquidity right now.”
Originally known as Clearbanc, Clearco was founded in Toronto in 2015. The company is among many in Canada and abroad who have laid off staff within the past year, including Shopify in Ottawa and several tech staples of BC.