The firm said it would now focus on its three most successful markets - Germany, Belgium and Denmark. It would also continue to operate in Norway, Sweden, Finland, the Netherlands and Luxembourg.
Stepstone said it was "unable to sustain the current level of investment across Europe," and was cutting its workforce to below 350, from 876 at the end of September.
It said it made a loss before EBITDA in the third quarter this year of €16.7m, compared to a loss of €40.8m in the same period last year. Revenues fell to €13.4m from €14.1 million.
Stepstone said it planned to call an extraordinary general meeting, and that efforts to raise more funds were at an advanced stage. "However, if sufficient funds are not forthcoming within the planned timescale the company will be unable to continue trading as a going concern," it said.
The company's cash reserves fell to €22.5m at the end of the third quarter, from €46.9m at the end of the second quarter. The company handles jobs in a range of careers, including financial services.