In pursuit of earnings, Clearco co-founder Michele Romanow has stepped down as chief government of the corporate round a yr after assuming the official position. The shift comes alongside one more spherical of layoffs, this time impacting 30% of employees throughout all groups, Romanow confirms.
Now, Clearco solely has 140 employees, down from 500 simply final yr. “We don’t ever lie, we’re beneath the identical pressures as each different firm to turn out to be a worthwhile enterprise. And so we’ve simply continued to make the arduous choices..and proceed to be forward of the curve,” Romanow stated in an interview with TechCrunch, explaining the shift.
There’s in-house precedent for each of those adjustments. Clearco has undergone quite a few rounds of layoffs over the pandemic, together with a reduce that impacted 25% of employees. Moreover, in 2022, Toronto-based fintech noticed its different co-founder, Andrew D’Souza, step down from his CEO position, to get replaced by Romanow. Now, each the co-founders will assume government chairman positions.
With its co-founding staff gone, and one more spherical of layoffs, Clearco has a, properly, clear problem forward of it: how does it flip issues round, and finally defend its $2 billion valuation?
For now, Romanow tells TechCrunch, the reply is self-discipline. And Andrew Curtis, who will take over the chief government position at Clearco after spending twenty years of his profession within the monetary companies world.
Curtis, who’s CEO efficient as we speak, stated in an interview with TechCrunch that “the entire cause I’m right here is to push the corporate towards profitability and money stream break-even.”
Whereas Romanow denied any potential of her maybe beginning a brand new firm given as we speak’s change, she did verify one element: the entrepreneur will proceed to be on Dragon’s Den, a spin off of Shark Tank, regardless of the present kerfuffle.
“This isn’t about me having an ego and needing a sure position,” Romanow stated. “I’m a progress CEO, and now we want a CEO that may be very financially-driven, and goes to get us to the subsequent interval of break-even enterprise.”