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- A blockchain-based digital platform, we.trade has recently axed half of its employees, after seeking secure financing from a few of its bank partners and an external investor.
- On June 11, dozens of employees informed that their role in the company is ‘Unsustainable’.
- According to sources, the issue arises when funding raised by one of the shareholding banks proved lesser than expected funds.
A blockchain-based platform, we.trade has recently axed half of its employees, after seeking secure financing from a few of its bank partners and an external investor.
The Funding Raised Lesser Than Expected
As per sources, on June 11, dozens of employees informed that their role in the company is ‘Unsustainable.’ However, the redundancy is primarily in its commercial and product-focused functions.
Moreover, the news about job termination comes just a week after IBM acquired a 7% stake in we.trade, Notifying it as an enhanced collaboration. According to sources, the issue arises when funding raised by one of the shareholding banks proved lesser than expected funds. Many of which have opted not to reinvest in recent series of funding.
With the shortage of funding, the company decided to continue its operation with less number of workforces. Thus, seeking added funding from the shareholders and licensees. The company, endowed by its shareholder banks that include Deutsche Bank, Erste Group, CaixaBank, HSBC, KBC, Nordea, Rabobank, Société Générale, Santander, UBS, and UniCredit.
Some Banks Opted Not To Reinvest In We.Trade
The head of commercialization, David McLoughlin, stated adaptability and regard for cost structures are significant for any youthful business. Further, he added as an early-stage organization. It is critical that we.trade stay spry.
Besides this, McLoughlin pointed out that few banks chose not to reinvest for several reasons. However, many banks did. Concerning investment, he said the company is happy with the latest re-investment by many of the shareholders.
When McLoughlin asked if the reason for the strike in funding is due to the COVID-19 pandemic. He responded that it is acting as a “catalyst” for digitization.
