Calgary-based Neo Financial has laid off 102 employees, representing roughly 10 per cent of its workforce, as the rapidly growing fintech moves to simplify its business and concentrate on fewer priorities.
The cuts affected nearly every part of the company, according to a message shared with employees and published on LinkedIn by co-founder and CEO Andrew Chau.
Chau took responsibility for the decisions leading to the restructuring, acknowledging that Neo’s efforts to build multiple products simultaneously introduced complexity and slowed the organization as it expanded.
“We’re going to build fewer things faster, and build them exceptionally well,” Chau wrote.
Neo intends to focus its resources on products that help Canadians manage their money, establish credit, build savings and pursue homeownership.
Departing employees will receive severance, extended benefits coverage and career transition support. Neo is also waiving its equity vesting cliff for affected employees who had not yet reached it, while Chau has offered to make introductions across his professional network.
The layoffs follow several major growth milestones for one of Calgary’s most prominent financial technology companies.
In February, Neo raised $68.5 million in an oversubscribed round backed by more than 100 Canadian investors. The financing was intended to support its inaugural securitization program and expand its lending capacity.
Neo later became a direct participant in the Interac e-Transfer network, giving the company greater control over money movement features for its more than one million customers.
Founded in Calgary in 2019, Neo has raised more than $650 million and offers credit cards, savings accounts, mortgages and embedded financial products.
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