Neo Financial has laid off more than 100 employees.
In a LinkedIn post on Tuesday morning, the Calgary-based FinTech company shared that it had made the decision to eliminate 102 of its employees’ roles, accounting for roughly 10 percent of the company’s team across “nearly every part of Neo.” The statement was drafted by Neo co-founder and CEO Andrew Chau, and was a verbatim copy of an internal memo circulated to the company’s remaining employee base, Jeff Adamson, the company’s chief commercial officer and other co-founder, told BetaKit in an email
In the statement, Neo said the company has grown rapidly over the years, allowing complexity to creep in and ultimately slow operations down. Adamson echoed those sentiments, telling BetaKit that Neo had been “building too many things at once.”
“That added complexity, slowed us down, and spread people thin,” Adamson said in an email. “A smaller, more streamlined team on a singular company focus is how we get clearer and faster with less parallel work and more of our energy on daily banking, credit, savings, and the path to homeownership.”
Adamson did not elaborate on exactly which departments saw cuts, or whether Neo’s Toronto, Calgary, or Winnipeg locations were most affected, but said the company wasn’t characterizing the decision as a reaction to overhiring nor to AI-related automation.
The company said parting ways with so many employees was a difficult decision made in the interest of serving its overarching mission.
“Today is not about shrinking our ambition. It’s about being laser-focused on delivering what Canadians need,” the statement reads. “We’re going to operate as a simpler and faster team with the utmost clarity of direction. We’re going to build fewer things faster, and build them exceptionally well.”
Employees surprised
At least some of the former Neo employees said they were surprised by the decision. Sergio Schüler, who worked as a group product manager for financial crime with Neo, said he was laid off Tuesday morning.
“[At] about 10 a.m. today, I got a meeting invite with the CHRO and the COO,” Schüler said. He said he was especially surprised, as he had received an internal company award just a few months ago.
Schüler told BetaKit that he was hired as a temporary foreign worker (TFW). Schüler said he is now looking for work, but that process may be more arduous as his work visa was employer-specific. Federal government records show that Neo Financial was issued positive labour market impact assessments (LMIA), which gave it permission to hire seven temporary foreign workers in the first half of this year, and 26 last year. BetaKit has reached out to Neo for comment as to how many temporary foreign workers were impacted by the cuts, and how much of the company’s workforce is made up of TFWs.
Camilla Herrmann, whose LinkedIn lists her as a former senior product designer with Neo for the past six months, posted well wishes to others impacted by the cuts, as well as the company itself.
“Unfortunately, I was one of the 102 professionals impacted by this decision,” her LinkedIn post reads. “So, if you are hiring, hit me up! Wishing nothing but success to Neo Financial and all the best to all affected people and their families.”
Laid off employees will receive severance pay, extended benefits coverage, and a waived equity cliff, according to Neo. The company said it will also provide career transition support for any employees who want it.
Falling valuation
Neo Financial offers consumer banking products from loyalty rewards cards, to mortgages via lending partners. The company has raised more than $650 million CAD, including debt and equity, and was valued at more than $1 billion CAD as of its Series C deal in May 2022. However, its November 2024 Series D raise—reportedly led by Chinese investor Tencent—reduced its valuation to $510 million USD post-money, according to The Globe and Mail.
Two of its largest loyalty card partnerships, with both Tim Hortons and The Hudson’s Bay Company, both ended this year.
Today’s layoffs are not the first in Neo’s history to make headlines. In 2024, the company was the subject of an investigation by the Winnipeg Free Press over allegations of unexplained layoffs. That investigation claimed that while Neo had hired for hundreds of positions in Winnipeg as part of a provincially-backed hiring program. The province later decreased Neo’s job-creation funding.
BetaKit’s Prairies reporting is funded in part by YEGAF, a not-for-profit dedicated to amplifying business stories in Alberta.
Feature image courtesy Neo Financial.