Trade Republic

Trade Republic, a German neobroker and fintech company, is laying off dozens of employees as it shuts down its in-house customer service operations. The move involves closing its subsidiary, Trade Republic Service GmbH, effective immediately. While the company states it will relocate some expert roles to its banking entity, the majority of the customer service team—estimated to be at least 50 employees—are being let go. This restructuring, which outsources customer support to larger, specialized centers across Europe, comes amid recent criticism of the company's customer service performance and communication issues with clients. The layoffs reflect a strategic shift to streamline operations in the competitive fintech and online brokerage industry.

German fintech startup Trade Republic, a neobroker with around 700 employees, conducted layoffs in June 2022 as part of a restructuring effort. While the exact number of affected employees was not disclosed, the company announced it would maintain its workforce size around 700, indicating a targeted reduction. The layoffs, influenced by a shifting market environment and rising interest rates that impacted tech valuations, were aimed at refocusing on core product development. Despite a recent €250 million funding round led by investor Sequoia, which had urged portfolio companies to cut costs, Trade Republic planned to continue hiring in certain areas while trimming teams like data science. The move reflected broader trends in the fintech industry, where peers like Klarna and PayPal also faced cuts.