Advertisement

Michele Romanow’s Clearco cuts 60 more employees in latest tech sector layoffs

Click to play video: 'Hootsuite and Shopify lay off thousands of employees'
Hootsuite and Shopify lay off thousands of employees
Vancouver-based tech company Hootsuite is laying off one-third of its employees. It's one of several tech businesses that are cutting their workforce. And as Kristen Robinson reports, the return to pre-pandemic life might be a reason why this is happening – Aug 9, 2022

Michele Romanow’s e-commerce investing company Clearco has laid off 60 employees as it hands off its international business, a month after cutting 25 per cent of its workforce.

Spokesperson Nick Rosen-Wachs says the staff impacted were located in the U.K., Ireland, Australia and Germany.

The layoffs at the “Dragons’ Den” star’s company come as Clearco announced a strategic partnership with Outfund, the U.K. and Australia’s largest e-commerce investor.

The terms of the partnership between the companies that provide founders with non-dilutive capital were not publicized, but Clearco says the agreement does not include any of its staff, technology, intellectual property, infrastructure or operations.

Read more: How to rebound from a layoff in Canadian tech — ‘Control your narrative’

Clearco says it will offer departing employees severance and a two-year window to exercise equity as it moves towards focusing entirely on its two core and largest markets, the U.S. and Canada.

Story continues below advertisement

On July 29, Clearco announced it was laying off 125 employees of its 500-person workforce, saying it had grown its head count too quickly in anticipation of continued economic growth.

At the time, the company said it was considering “strategic options” for its international operations.

Read more: Shopify to lay off 10% of workforce after pandemic growth bet ‘didn’t pay off’: CEO

“We are confident that this is the best decision for our customers who will continue to benefit from Outfund’s revenue-based financing model without ever having to give up equity in their businesses,” Romanow said in a statement Tuesday.

“It is of course with great regret that we have had to let our international team go as part of this partnership. They are a hugely talented team and we are confident that we will be able to support them in their next steps.”

The reasoning behind the recent cuts at Clearco speak to a broader trend happening in the tech sector worldwide as exuberance around stocks has faded, inflation has soared and recession rumours have loomed.

Click to play video: 'Layoff rules: What employers and workers need to know'
Layoff rules: What employers and workers need to know

Sponsored content