Clearco Announces Major Layoffs, Paints Gloomy Picture
Clearco, the international small business funding company led by celebrity CEO Michele Romanow, announced it was laying off 125 employees on Friday. Romanow shared the news on social media in an overall gloomy message about the business’ state of affairs. For one, the company says that Clearco is currently “considering strategic options” for its international operations.
In a letter from Romanow and Executive Chairman Andrew D’Souza, they state:
Last modified: July 29, 2022
The short answer is the current macroeconomic environment looks very different today than in 2021. We have rising interest rates not seen since the mid-90s, the highest inflation in four decades, one of the biggest swings in European currency since the founding of the Euro, all compounded with a slowdown in e-commerce growth that’s been well documented and continued supply chain issues for companies of all sizes.
We were building to match the growth of the economy and now face significant headwinds that simply didn’t exist six months ago. We grew our headcount too quickly in anticipation of continued economic growth and that decision rests on us alone.
After assessing the current market conditions and uncertainty we’re seeing across the e-commerce sector, this was the most prudent action to take and was necessary to:
1. Ensure we’re able to support as many founders as possible, today and in the future, in their growth journey and;
2. To come out of this economic downturn a sustainable and profitable company.