Neobank Open lays off 47 employees for performance issues, founders take pay cut to optimize operations
- ByStartupStory | April 21, 2023
Open, a neobanking platform catering to SMEs, has let go of 47 employees due to performance-related reasons. In an effort to streamline operations, the company’s founders have taken a 50% reduction in their pay.
Open has clarified that its founders have taken only a 50% salary cut to set an example for the company as it prepares for growth and profitability. The neobanking platform emphasized that none of its employees’ salaries have been reduced in any way.
The company also stated that the recent layoffs were solely based on performance evaluations. However, Open confirmed that high-performing employees received an average hike of 20-30 percent, along with employee stock ownership plans (ESOPs).
“While 47 Openers were exited based on performance, the company is actively recruiting for critical functions such as growth marketing, product, and sales functions to continue growing the business and better serve its customers,” the company said in a media statement on Thursday.
Co-founder and CEO Anish Achuthan reiterated that the company’s recent staffing changes had no impact on the salaries of existing employees. He also emphasized that deserving high-performing employees received substantial pay increases and ESOPs.
Open has announced that it will continue its efforts to build a highly effective and performance-oriented organization as part of its strategy to scale-up and achieve profitability. The neobanking platform aims to become a robust and scalable organization that can better serve its customers and expand its business.
In May 2022, Open achieved unicorn status after raising $50 million at a valuation of $1 billion in a Series D funding round. The investment was led by IIFL and saw participation from existing investors Temasek, Tiger Global, and 3one4 Capital. This funding round has enabled the company to expand its services and grow its customer base.
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