financemagnates.com
eToro (Nasdaq: ETOR) is reducing about 7 per cent of its global headcount, according to sources. A letter sent by the broker’s CEO, Yoni Assia, to staff, and seen by FinanceMagnates.com, noted: "As eToro matures, we must ensure we are correctly sized to meet our business needs and support our long-term growth strategy."
According to eToro's IPO prospectus, it had 1,501 employees across over 10 offices globally, as well as remotely, by the end of 2024. If those numbers remain intact (or are around), the broker will lay off over 100 staffers.
However, it remains unclear who or which positions will be cut as part of eToro’s mass layoff drive.
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.
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Brokers Cutting Staff Is Common
"We are reducing our global headcount by approximately 7%", Assia wrote. "This is not a decision that we take lightly and we will be supporting all impacted employees as best we can".
"We are aligning our resources with our key priorities and leveraging process automation and AI to operate more efficiently and focus on the areas most critical to our long-term success. This will sharpen our execution so we can move faster".
"It is often harder to make these changes when a company is doing well, but that is precisely when they are most necessary", Assia continued. "By taking these steps now from a position of strength, we are focusing our people and effort on the technologies and opportunities that will shape our future".
Assia clarified that "Our financial condition has never been stronger. In Q3, we saw net contribution (revenue) growth of 28%, Adjusted EBITDA growth of 43%, and solid cash flow generation. We have a strong balance sheet (cash, cash equivalents and short term investments were $1.2 billion as of September 30, 2025) and we will continue to invest in areas that support our continued growth, including looking for strategic opportunities for in-organic expansion".
"The investing landscape is experiencing unprecedented change. We are confident that we are well placed to capture the significant growth opportunities presented by multiple macro tailwinds, strengthen our competitive position, and deliver long-term value to our users and shareholders."
Not Only eToro
Meanwhile, eToro is not the only broker to cut its workforce. In 2023, IG Group reduced its global workforce by 10 per cent, while a few months later, CMC Markets announced a 17 per cent staff reduction. FinanceMagnates.com recently reported exclusively that the operator of FXCM and Tradu was also preparing to cut more than 100 employees. Tradu also mentioned AI as a partial reason for the layoff.
Despite its strong listing, eToro shares have been struggling in the market for months. The stock has lost over 50 per cent of its value since the listing and was recently downgraded by Goldman Sachs from Buy to Hold, with the firm trimming its price target.
Although the platform projected a 7 per cent annual top-line growth for 2025–2027, this trails the peer average of 8 per cent. Its 36 per cent pre-tax margin also looks thin compared with the sector’s 54 per cent.