In today's rapidly evolving business landscape, tackling challenges with agility is a necessity, not an option. Recently, TrueLayer, a fintech powerhouse specializing in open banking, made headlines with an announcement many startups and companies could relate to: "right-sizing" through layoffs, coupled with plans to launch innovative products. As someone deeply committed to understanding and strategizing growth paths for businesses, I, Violetta Bonenkamp, believe there are important lessons for entrepreneurs, startup founders, and SME owners in this story.
TrueLayer’s decision reflects a broader trend of businesses pivoting towards profitability amidst challenging market conditions. Simplicity, sustainability, and strategic innovation emerge as thematic cornerstones for survival and growth. What can we learn from their approach? Here’s an analysis intertwined with actionable insights to help founders make smarter decisions, especially in times of turbulence.
Lessons from TrueLayer’s Decision to Right-Size
TrueLayer’s layoffs were not isolated; they are part of a global movement in fintech and tech startups adapting to new market contexts. But reducing headcount, while painful, can sometimes pave the way for focused growth. Below are key takeaways relevant to startups and SMEs:
1. Adapt Your Strategy to Current Economic Realities
TrueLayer’s CEO Francesco Simoneschi pointed out that the fintech sector, previously fueled by abundant venture capital, now faces tightened funding opportunities. As a result, achieving profitability, rather than rapid expansion, became the priority. For startups:
- Focus on Core Metrics: Are you chasing vanity metrics like growth rates and user numbers, or actionable metrics like profitability, customer retention, and revenue streams? Websites such as LeanAnalytics.io provide frameworks to identify the right metrics.
- Revisit Your Business Plan: Economic downturns require a reevaluation of assumptions. Try a scenario modeling platform like LivePlan's Forecast Tool to simulate impacts of lower revenue or slower growth on your operational costs.
What TrueLayer Got Right
2. Introduce Products That Solve Specific Market Pain Points
Despite downsizing, TrueLayer remains committed to bringing new products to market, including solutions in credit and agentic payments, technology-driven, automated payments leveraging advancements in AI. This pivot reflects their understanding of market maturity: simple payment APIs are commoditized, while smarter payment systems represent higher value.
For entrepreneurs looking to differentiate their offerings:
- Pay attention to niche trends like agentic or automated services powered by AI. Explore how platforms like OpenAI can help you integrate smart technologies into your products.
- Innovate around existing products before creating something new out of scope. Start small. Maybe your current clients need additional, complementary features, TrueLayer analyzed their ecosystem before making bold decisions.
3. Prioritize Operational Efficiency
What does "right-sizing" really mean? In TrueLayer's case, layoffs weren't random. Simoneschi highlighted their review of how to consolidate teams and identify opportunities to streamline operations. This strategic downsizing focused on making the leanest possible version of the company, optimized for operational costs and profitability.
Entrepreneurs need to:
- Conduct role-based ROI analyses using models or tools like the RACI matrix for clarity on critical vs. redundant positions in your team.
- Refine operational costs: Audit subscription tools or SaaS fees your business rarely uses. Platforms like TrackMySubs help you easily identify wasteful subscriptions.
How to Navigate Similar Challenges in Your Business
Startups are no strangers to tough market conditions. Here's a step-by-step guide inspired by TrueLayer's maneuvers:
-
Start with Data-Driven Decisions
Gather everything you need to understand your company's financial health. Tools like QuickBooks or Wave Accounting can help even lean startups map out priorities. -
Identify and Retain Key Talent
TrueLayer retained mission-critical roles while offering thoughtful severance packages to others. As a founder, prioritize keeping the most impactful team members whose output aligns directly with revenue or product delivery. -
Plan Strategically for the Right Product Roadmap
Know where your value lies and how market trends impact customer needs. Use customer feedback systems like Typeform to gather actionable insights. -
Communicate Transparently
Layoffs or hard pivots require empathy paired with clarity. Regularly update stakeholders about long-term plans via tools like Slack or Zoom town halls. -
Focus on Sustainable, Incremental Wins
Instead of rushing risky products to market, enhance or expand features within existing frameworks to both reduce cost overruns and maintain customer trust.
Common Mistakes Startups Make in Times of Change
1. Viewing Layoffs as Failure
Layoffs can signal proper leadership if done strategically. Avoid communicating layoffs as organizational panic; instead, frame them around sustainable plans for future success.
2. Ignoring Market Context or Competitor Moves
TrueLayer repositioned by not only learning from past decisions but also observing evolving competitor models like Plaid or Tink. Stay up-to-date via newsletters such as Sifted’s Startup Insights.
3. Skipping Transparency
Your employees, stakeholders, and even customers will notice if you try to sugarcoat tough decisions. Be honest, explain your reasoning, and describe how adjustments will lead to greater rewards.
4. Neglecting Long-Term Investments in Innovation
Even in upheaval, TrueLayer doubled down on AI-powered product expansion. Balance survival approaches with innovation strategies for the post-crisis market.
Fintech’s Changing Reality: Why Entrepreneurs Should Care
As TrueLayer demonstrates, pivots in hard times position businesses for long-term success. Startups in every industry, from deeptech to SaaS, must pay attention to this case. Here's why:
- Product Commoditization is Real: Just like payment APIs, any high-growth solution will reach saturation. Smart founders iterate before that saturation hits.
- Pivoting Remains a Requisite Skill: Companies that balance agility with transparency thrive even when facing layoffs, a lesson applicable across verticals.
Conclusion
TrueLayer’s story, from layoffs to product innovation, offers entrepreneurs valuable insights into survival during challenging economic markets. The path toward profitability is paved with hard decisions, but aligning transparency, efficiency, and innovation is a formula growth-focused leaders can emulate.
As someone with two decades of experience working with businesses across dynamic sectors, I often return to this idea: pivots need purpose. Use data, leverage tech wisely, and always keep stakeholders engaged in your roadmap.
Looking to refine your business strategy? Explore tools and case studies with proven credibility. Or dive into my own methodologies, like gamepreneurship, on our startup platform at Fe/male Switch, and start building your competitive edge today.
Stay agile, stay informed, and remember: tough decisions now create unshakeable foundations for future growth.
FAQ
1. Why did TrueLayer lay off 10% of its workforce?
TrueLayer's decision to lay off 10% of its workforce was part of "right-sizing" due to challenging market conditions and the need to pivot toward profitability. Read more about TrueLayer's layoffs
2. What is TrueLayer's focus after the layoffs?
TrueLayer is now prioritizing profitability and operational efficiency while doubling down on innovative product development like credit and agentic payments. Discover TrueLayer's strategy
3. What are agentic payments?
Agentic payments refer to technology-driven, autonomous payment mechanisms powered by advancements in AI and API integrations. Learn more about TrueLayer's focus on agentic payments in fintech here
4. How did the leadership at TrueLayer approach the layoffs?
TrueLayer's leadership emphasized transparency, treating employees fairly, and focusing on long-term success. They looked carefully at their operational structure to make strategic adjustments. Find out more about TrueLayer's leadership approach
5. How does TrueLayer remain competitive in open banking?
TrueLayer is building next-generation products like smarter API-driven payment solutions and credit offerings to address market pain points and differentiate from its competitors, Plaid and Tink. Learn about TrueLayer's innovation efforts
6. How are TrueLayer's layoffs connected to the broader fintech sector?
TrueLayer's layoffs reflect a global trend in fintech and tech startups adapting to lower funding opportunities and increased pressure to demonstrate profitability. Explore fintech layoffs at TrueLayer
7. Does TrueLayer plan to launch new products despite the layoffs?
Yes, TrueLayer continues to invest in its product roadmap, including AI-powered credit and agentic payment systems, even after laying off part of its workforce. Check out TrueLayer's product roadmap
8. What other challenges has TrueLayer faced?
TrueLayer experienced decreased investment opportunities following the fintech bubble burst and had to adapt its operations to focus on sustainable growth. Read about TrueLayer's challenges
9. How is TrueLayer supporting employees affected by layoffs?
TrueLayer made changes to its employee options plans to ensure that impacted employees could still benefit from the company’s future growth. Learn about employee benefits at TrueLayer
10. How does TrueLayer’s pivot impact its rivals?
TrueLayer's strategic shift toward profitability and product innovation parallels changes among competitors like Plaid and Tink, signaling a growing maturity in the fintech sector. Discover the impact on competitors
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
- Her expertise extends to applying blockchain for IP management, ensuring data integrity, traceability, and secure sharing in the CAD industry.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
- Skill Lab: Micro-modules covering essential startup skills
- Virtual Startup Building: Create or join startups and tackle real-world challenges
- AI Co-founder (PlayPal): Guides users through the startup process
- SANDBOX: A testing environment for idea validation before launch
- Wellness Integration: Virtual activities to balance work and self-care
- Marketplace: Buy or sell expert sessions and tutorials
Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
- 5,000+ female entrepreneurs in the community
- 100+ startup tools built
- 5,000+ pieces of articles and news written
- 1,000 unique business ideas for women created
Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.