Fintech unicorn Melio laying off 7% of workforce
Fintech unicorn Melio laying off 7% of workforce
This is the second round of layoffs at the startup. The vast majority of the people being let go are based in Israel, with the company summoning about 40 employees from the local branch to a hearing on Monday
Fintech company Melio has announced that it is cutting approximately 7% of its workforce as part of an organizational restructuring at the company. The vast majority of the people being laid off are based in Israel, with the company summoning about 40 employees from the Israeli branch to a hearing on Monday.
Melio said that the employees who will be laid off will receive increased compensation packages, professional guidance in the job search process, as well as improved conditions for purchasing options. This is the second round of layoffs the company has implemented, but in the first one in August 2022, the local branch was not affected. Melio employed around 650 people prior to the layoffs, including 400 in Israel.
The company, which raised $250 million at a $4 billion valuation in September 2021, explained that the rate of growth in the company has caused inefficiency in organizational structures in some of the departments, with the branch in Israel growing from about 90 employees to over 400 in the last three years. The development department alone grew from about 50 employees to around 300 over that period.
Matan Bar, CEO of Melio, said: "This is a difficult day for us. Accelerated growth as we have experienced in recent years is welcome, but it is the management's responsibility to examine all the time whether the organizational structure that has worked so far will serve us well for our goals in the future as well. In our case, we are forced to make a difficult but necessary decision, and unfortunately, as a result of the structural change, we also have to say goodbye to employees. At the same time, there is no change in our goals for 2024, and we are convinced that this year, as every year, we will meet our ambitious goals."
Bar added, "We have plans for accelerated growth in the coming years - even faster than the growth we've experienced to date - but we won't be able to realize them if we don't take responsibility for our efficiency and organizational focus. Again and again, we are included in the lists of promising companies in the global fintech market - our responsibility is to realize this promise."
