In the second round of layoffs, Swedish fintech Juni is letting go of another 30% of its staff. This comes two months after it let go of 10% of its staff. It comes after it raised $206 million in debt and equity this summer. In a Wednesday post on Linkedin, the company said that the second round of layoffs was because of changes in the market.
“Our decision to re-evaluate our organisational structure and operational model is a proactive one that ensures we are best positioned to face any challenge that this broader macroeconomic context might bring in the future. Our strategic goals remain unchanged,” the founders Samir El-Sabini and Anders Orsedal wrote on Linkedin.
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Juni declined to answer why the layoffs were divided into two sets but a spokesperson said: “We have 217 employees at Juni and roughly a third will be impacted by these changes. We are restructuring our organisation and operating model, and all areas are therefore impacted.”
Plan changed
Juni has raised a total of $282 million, and the company says that the current market conditions haven’t hurt them much. Since June, Juni has also increased the number of transactions by more than 100%.
After it raised money in the summer, the plan was for it to focus on growth while the rest of the fintech scene was struggling with layoffs and falling valuations, like the German digital bank Nuri, which filed for bankruptcy in August, and the Swedish buy now, pay later giant Klarna, which did its second round of layoffs in September.
Juni joins fintech bloodbath; lays off a third of staff https://t.co/T4gsJvA4ZJ
— 🟩 Dr Martin Hiesboeck #CardanoSummit2022 (@MHiesboeck) November 17, 2022
It said at the time that it planned to add 60 more people to its team of 200 by the end of the year.
The Gothenburg-based startup has made a way for ecommerce businesses to manage their money. It has physical and virtual cards, credit cards, accounting, analytics, and digital advertising platforms, and it now works with Google Ads. Since it started, it has been a very popular investment.
Last summer, early investors like Cherry Ventures, EQT Ventures, DST Global, and Felix Capital put money into Juni’s Series A. In the fall, they put in more money and gave the company more time to grow. This summer, Mubadala Capital from the UAE put in $106 million in equity, and TriplePoint Capital from the US put in $100 million in venture debt financing.
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