Calgary-based Neo Financial has laid off 102 employees as the fintech reduces organizational complexity and concentrates its resources on fewer products.
The cuts represent approximately 10 per cent of Neo’s workforce and affected nearly every part of the company.
Co-founder and CEO Andrew Chau took responsibility for the restructuring in a message to employees, acknowledging that Neo’s rapid expansion and efforts to develop several products simultaneously had introduced complexity and slowed the organization.
“We’re going to build fewer things faster, and build them exceptionally well,” Chau wrote.
Neo will now focus its resources on products that help Canadians manage their money, establish credit, build savings and work toward homeownership.
Affected employees are being offered severance, extended benefits and career-transition assistance. Neo is also waiving its equity vesting cliff for employees who had not yet reached it, allowing them to retain a portion of their equity.
Founded in 2019, Neo offers credit cards, savings accounts, mortgages and embedded financial products. The company has raised more than $650 million and serves more than one million customers.
As Fintech.ca previously reported, the restructuring follows a year in which Neo continued to expand its financial infrastructure.
The company raised $68.5 million from more than 100 Canadian investors in February for its inaugural securitization program. In April, it became a direct participant in the Interac e-Transfer network, providing greater control over money movement for its customers.
The reduction stands in contrast to several recent hiring announcements from Canadian technology companies, including major recruitment pushes at CoLab Software, Motion and Safe Software.
Neo has not said whether the restructuring will affect any future hiring plans.