Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Walmart shareholding in fintech firm PhonePe drops to 85% from 89%

    June 5, 2023

    The Fintech Infra Revolution: India’s Emerging $10Bn Revenue Opportunity

    June 5, 2023

    Fintech Stripe debuts charge card program in US; soon to launch in UK, EU

    June 2, 2023
    Facebook Twitter Instagram
    Your Fintech
    • Finance
    Your Fintech
    Home»Finance»Thousands of fintech jobs are gone as companies cut costs for the first time
    Finance

    Thousands of fintech jobs are gone as companies cut costs for the first time

    yourfintechBy yourfintechFebruary 13, 2023Updated:February 13, 2023No Comments2 Mins Read
    Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp VKontakte Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Thousands of employees in the nascent financial technology industry are losing their jobs as companies cut costs for the first time.

    Affirm Holdings Inc., a “buy now, pay later” lender, and online platform Upstart Holdings Inc. are firing one of every five of their workers, and other firms have made deeper cuts. They joined a bevy of fintech companies slashing payrolls as borrowing has become more expensive. “After several years of sky-high venture funding and more unicorn valuations than you can count on one hand, a lot of fintech is being forced to mature and streamline more rapidly than they planned to, and job cuts are a quick way to do so,” said Charlotte Principato, financial services analyst at Morning Consult. “This was bound to happen at some point

    Fintechs boomed during the early days of the pandemic, ambitious to grow and driven by low-interest rates and consumer hunger for debt. Firms including LendingClub Corp. have seen earnings decline and shares slump since then, amid slackening demand and Federal Reserve interest-rate increases.

    Affirm Chief Executive Officer Max Levchin said on an earnings call Wednesday that his company’s headcount reduction of about 500 represented around six months of engineering hiring. The dismissals were announced as the lender reported a bigger-than-expected net loss for its most recent fiscal quarter. If they don’t hit their objectives, they have to lay people off — it’s just the way it is,” Paul Sorbera, president of executive-search firm Alliance Consulting Since the beginning of November, Blend Labs Inc. announced it would cut 28% of its onshore jobs, Plaid Inc. fired 260 employees and PayPal Inc. said 2,000 workers would be dismissed. Stripe Inc. Intech will continue to be a big bet for investors, banks, and technology companies, but the fintech innovations may start to come from more-traditional firms that are in stronger financial positions,” she said in an email. “Smart banks and large financial institutions will scoop up talent, products, ideas or even entire struggling startups and bring them in-house to make the innovations their own.”

    Share. Facebook Twitter Pinterest LinkedIn Tumblr WhatsApp Email
    Previous ArticleFintech firm mPokket says an app impersonating it has been blocked by govt
    Next Article A decade of fintech failures: 4 innovations that didn’t live up to the hype
    yourfintech
    • Website

    Related Posts

    Walmart shareholding in fintech firm PhonePe drops to 85% from 89%

    June 5, 2023

    The Fintech Infra Revolution: India’s Emerging $10Bn Revenue Opportunity

    June 5, 2023

    Fintech Stripe debuts charge card program in US; soon to launch in UK, EU

    June 2, 2023

    Fintech Brex’s Revenue Surges After Regional Bank Turmoil

    June 1, 2023

    Leave A Reply Cancel Reply

    Our Picks

    Subscribe to Updates

    Get the latest creative news from SmartMag about art & design.

    About Us
    About Us

    We provide a wide range of customized, integrated B2B and B2C digital marketing services solutions that are ideal for your business.

    We're accepting new partnerships right now.

    Email Us: info@yourmartech.com
    Contact: +1-530-518-1420

    Our Brands
    • Your Martech
    • Your HRtech
    • Your Revenue
    • Your Biotech
    • Your Infotech
    • Your POStech
    • Your Healthtech
    Subscribe Now
    Loading
    LinkedIn
    • Privacy Policy
    © 2022 Vigarbiz Inc. Designed by Vigarbiz Media

    Type above and press Enter to search. Press Esc to cancel.