More than 12% of the firm's workforce has left the company after an announcement by cofounder Michael Katchen
It was a tough day Wednesday for the team at Wealthsimple, with a significant number of their colleagues leaving the business just months after it ended a stellar year.
Following a meeting earlier in the day, CEO and cofounder Michael Katchen confirmed in a letter to staff that 159 people were leaving the firm due to “changes to market conditions.”
The job losses represent more than 12% of the firm’s 1,262-strong headcount, while some of those remaining with the company will see restructuring within their operations.
A spokesperson told Wealth Professional that the firm’s “core focus at this time is on taking care of our employees who left us today.”
In his letter, Katchen said that while the last two years had seen the business benefit from the surge in markets, volatility works both ways and now many of Wealthsimple’s clients are “living through a period of market uncertainty they’ve never experienced before.”
He said that ensuring clients are looked after is vital and for that reason the firm will be “laser focused” on its core operations such as investment and banking, along with “the products that will power financial innovation, like crypto.”
Read more: Wealthsimple forms partnership for new sustainable investment offering
The firm will be restructuring some teams including marketing, recruitment, client success, and research.
Support for leavers
While acknowledging how hard it is to learn that you have lost your job, Katchen said that the firm is supporting those leaving.
This includes severance, extended health and dental coverage, accelerated vesting for some people, and programs to help find another job.
Those employees that have left have also been allowed to keep the laptop and other home office equipment provided by the company, without access to sensitive data of course.
Management changes
For some of those remaining with Wealthsimple, there may be some changes of leadership within teams.
Katchen will be hosting an “ask me anything” session for employees Thursday.
