Etoro cuts staff by 100, cancels SPAC Deal

Etoro, a social trading and cryptocurrency investing platform situated in Tel Aviv, Israel, is letting go of about 6% of its workforce. CEO and co-founder of the business Yoni Assia stated that the choice was made based on market circumstances.

“Due to the current market conditions and after a period of accelerated growth we decided to take in the current period a more balanced approach between growth and profitability,” Assia said. “As a result, we made a difficult decision to cut our workforce in order to ensure long-term sustainable growth.”

The company Etoro was established in 2007 by David Ring, Ronen Assia, and Yoni Assia and offers traders access to equities, commodities, indexes, and cryptocurrencies. In total, Etoro has acquired three companies for $322.7 million from investors.

Etoro has chosen to put an end to its proposed SPAC merger with the blank-check company Fintech Acquisition Corp. while also reducing its workforce by 6%. (NASDAQ: FTCV). Originally, Etoro intended to raise money through an IPO through the SPAC agreement, but it now intends to do so privately.

Etoro allegedly reportedly has its sights set on raising $800 million to $1 billion in private finance, for a total worth of about $5 billion. Before the SPAC transaction was abandoned, it was predicted that Etoro would be valued between $8.8 billion and $10.3 billion.