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 “say goodbye” to 102 of its employees, who accounted for roughly 10 percent of its 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. 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.”
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.
Neo Financial 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 ($703 million CAD) post-money, according to The Globe and Mail.
The company also has locations in Winnipeg and Toronto.
This is a developing story. Check back for more updates soon.
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.