Michele Romanow’s Clearco lays off quarter of staff, cites e-commerce uncertainty

Another Canadian tech company has announced sweeping layoffs. Toronto-based Clearco, co-founded by Dragon’s Den star Michele Romanow, is cutting 25 per cent of its staff.

In a memo to employees on July 29, 2022, the e-commerce investing platform said it increased its headcount “too quickly in anticipation of continued economic growth.” After assessing current market conditions and uncertainty across the e-commerce sector, the company added that it is now facing “significant headwinds” that did not exist six months ago.

125 employees of Clearco’s 500-person team were affected by the cuts. The company has not released details on the positions or locations impacted.

However, Clearco added that it is considering “strategic options” for its international operations. After making its debut in Toronto, the company has expanded to the United Kingdom, The Netherlands, and other European markets.

READ MORE
• Shopify laying off 10% of workers, misjudged e-commerce growth
• Layoffs in Canada

Termination agreements for Clearco employees

As part of the layoff announcement, Clearco said that affected employees will receive:

• Severance pay
• A two-year window to exercise equity
• Extended health coverage
• Assistance with their job transition from the company’s leadership team

LISTEN: Alex Lucifero, an Ottawa employment lawyer and Managing Partner at Samfiru Tumarkin LLP, spoke with Matt Harris on Newstalk 580 CFRA about the rights employees have when companies announce mass layoffs.

Employees and senior executives at Clearco are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring. Severance can be as much as 24 months’ pay, depending on a number of factors.

READ MORE
• Severance packages in mass layoffs
• Severance for technology industry employees

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract. We can tell you if what you have been provided is fair, and how to get proper compensation if it falls short of what you are actually owed.

If you aren’t given the full amount (which happens often) you have been wrongfully dismissed and are entitled to compensation.