Blockchain-based we.trade, which works in open trading, has cut around half of its workforce after it was unable to secure sufficient funding, Global Trade Review reported.
On June 11, over a dozen employees working in the company’s commercial- and product-focused operations were told their roles were no longer needed.
The cuts come not long after tech giant IBM took a 7 percent stake in we.trade. The problems arose when the funding from some shareholder banks ended up being less than previously expected, and many shareholders didn’t end up choosing to continue investing. The fact that a large, promised amount of funding, around 2 million euros to 3 million euros ($2.2 million to $3.4 million), from Euler Hermes did not come to be also hurt we.trade’s revenue.
Euler Hermes did not respond to Global Trade Review’s requests for comment.
David McLoughlin, head of commercialization with the company, said making tough decisions is vital for a young company running into fiscal difficulties.
“As an early-stage company, it is critical that we remain agile and manage our resource needs as effectively as possible — in order to ensure the continued resilience of the company,” he said, according to Global Trade Review, adding that the company’s resource requirements “change over time, and given the level of maturity that the we.trade platform has reached, we have been able to optimize these resource requirements.”
He added that despite some shareholders choosing not to invest more, many others did reinvest.
The we.trade team-up with IBM was touted by the former as an “enhanced collaboration,” and ahead of the worldwide rollout, the company said it would be ramping up offerings to more customers in Europe and Asia, as well as working with more distribution ledger-based trade finance systems.
McLoughlin told Global Trade Review that the pandemic and related shutdowns could actually be a help for the company due to increased and hastening digitization of many financial needs.
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