eToro (NASDAQ: ETOR) is planning a second round of layoffs in the coming weeks that could affect dozens of employees globally, Israeli media outlet Calcalist reported. The US-listed company laid off 7 per cent of its workforce, or around 105 employees, last January.
Finance Magnates approached eToro to confirm the upcoming layoffs but had not received a response as of press time.
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Second Round of Layoffs in 12 Months
According to eToro's IPO prospectus, it had 1,501 employees across more than 10 offices globally and working remotely by the end of 2024.
eToro is headquartered in Israel and has offices in the UK, Cyprus, Belgium, Germany, Denmark, the United States, Australia, Abu Dhabi, Singapore, Seychelles, Malta, and Gibraltar.
During the January layoffs, which Finance Magnates reported exclusively, eToro’s co-founder and CEO, Yoni Assia, said the move was meant to “align our resources with our key priorities and leverage process automation and AI to operate more efficiently and focus on the areas most critical to our long-term success.”
Interestingly, the fintech recently reported a sharp drop in its revenue and net income for the third quarter of 2026, which was primarily driven by declining demand for cryptocurrency trading. Its clients placed 2 million crypto trades in October, 62% fewer than a year earlier.
Its net income fell 74 per cent year-over-year to $15 million, while net contribution declined 13 per cent to $186 million.
- eToro Adds 65 Exchange-Traded Futures in Australia, Where It Holds 45% of CFD Traders
- eToro Targets $100 Million Latin America Revenue From Sub-$20 Million Argentine Deal
- eToro Clients Placed 62% Fewer Crypto Trades in October Despite 18% Account Growth
The Struggling ETOR Shares
Founded in 2007, eToro went public in May last year at a valuation of about $4.4 billion. The number was significantly lower than the $10.4 billion it had targeted in a failed SPAC merger in 2021. It raised $250 million at a $3.5 billion valuation in March 2023.
Despite its bumper IPO, with around a 40 per cent listing uptick, eToro shares dropped by about 65 per cent, hitting a 52-week low this week. ETOR shares closed at $22.5 on Friday.
Meanwhile, Assia also said during a recent analyst call that the fintech wants to generate $100 million in revenue in Latin America within two to three years. The base will be LB Finanzas, an Argentine investing and payments app that the company agreed to buy for less than $20 million.
