Sharesies restructuring, layoffs expected

Sharesies has around 500,000 users and $2 billion in funds after management. Photo / File

Online investment platform Sharesies is proposing a restructure, with staff likely to lose their jobs.

The company chairwoman Alison Gerry cited the global economic downturn as the reason it needed to reduce its workforce.

“With the uncertain economic outlook projected to continue for some time, we need to ensure the business remains strong and sustainable and that the Sharesies platform is compliant and efficient.”

The outcome of restructuring will likely be finalised within the next month and it is not yet certain how many staff will be impacted.

Gerry said Sharesies joined a number of technology companies that had announced similar measures to cut their teams.

The company, which saw rapid growth in membership during Covid restrictions, implemented a recession plan last year. This included a hiring freeze, reducing its marketing spend and diversifying revenue streams.

The proposed redundancies would not affect customers, co-founder and co-chief executive Brooke Roberts said in the statement.

“We remain committed to providing a range of money opportunities so everyone has the opportunity to grow their long-term wealth through Sharesies.

“Our focus is firmly on supporting our team through this process.”

The company would not make any further comments about the restructure.

Sharesies had around 500,000 users and $2 billion in funds under management invested through its platform.

It announced plans to launch a Kiwisaver scheme in the first half of this year, after receiving its regulatory licence to do so in late 2022.

In December, Sharesies co-founder Leighton Roberts said creating a KiwiSaver scheme was the natural next step in the platform’s evolution.

“It’s always been our intention to broaden our offering to include a range of money opportunities so everyone can grow their long-term wealth, whether they have $5 or $5 million,” said Roberts, who was one of Sharesies’ three chief executives.