Investment app BUX cuts workforce to reduce costs

The investment app BUX is cutting jobs to reduce costs. The Dutch company saw that investors have been less active since last year and decided to ensure profitability, CEO Yorick Naeff told ANP.

However, BUX did not want to disclose how many layoffs were involved. Naeff spoke of "a small number." Nevertheless, several dozen layoffs are reportedly planned among the fintech company's few hundred employees.

During the coronavirus pandemic, BUX and other investment apps benefited from the fact that people had money and time to actively invest. In addition, the Gamestop hype also caused more attention for investors. This led to a run on the U.S. game retailer's stock by mostly young retail investors who responded to calls on a Reddit forum.

"In 2020 and 2021, we were very spoiled, but last year was probably a little more realistic in terms of the number of users and their activity." As a result, the company looked at where the organization had "too much fat on its bones" and "unfortunately decided to say goodbye to a few employees," Naeff said.

As part of the restructuring, BUX will focus more on a savings plan that allows investors to invest in a basket of stocks rather than actively managing it themselves. "We see now that this is a very important issue. We continue to grow, but we also need to make sure we continue to make a profit. That way we can continue to grow and also focus on developing other products in the long term."

Naeff himself expects the financial markets to pick up in 2024, but he has also seen increased activity in recent weeks. "Bitcoin has gone up a lot in the last few weeks, and the stock markets are up again as well. That's what's drawing people in."