Calgary-based Neo Financial has laid off 102 people, about 10 per cent of its staff in what the company’s co-founder and CEO says is “one of the hardest decisions we’ve made as a company.”
In a LinkedIn post, Andrew Chau said the strategic direction of Neo rests with him as CEO and he takes full accountability for the decisions that brought the company to this.
“Our ambition has always been our defining strength, and it always will be. As we grew rapidly over the years, building almost everything at once meant complexity crept in and everything moved slower, while great people worked tirelessly covering too much ground,” Chau wrote in his message to employees.
“You came to Neo to build world-class products for Canadians and get them into users’ hands. That is why today is not about shrinking our ambition. It’s about being laser focused on delivering what Canadians need.
“We exist to help every Canadian make real financial progress. That means meeting Canadians where they are and helping them turn daily money management into better credit, build real savings, and ultimately unlock homeownership.”
He said that’s the mission and 100 per cent of its energy will go there.
“To execute on this, 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,” said Chau.
“None of that makes today easier for the people leaving. These are not names on a chart. They are teammates and friends who built this company with us. There is no good way to do this. We tried to make a hard day more manageable in the ways that count: departing teammates are receiving severance, extended benefits coverage, waived equity cliff for those who haven’t hit their cliff yet, and career transition support. For anyone leaving who wants it, we’re helping them find their next role, and I’m personally making introductions across my network.”
Neo Financial is a technology company building what it says is a more rewarding financial experience through reimagined spending, savings, investing, and mortgages. It was founded in 2019 by the co-founders of SkipTheDishes.
Chau told remaining staff that the work ahead is clearer than it has been in a long time, “and the people doing it are the ones who will define what Neo becomes.”
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