Fintech Layoffs: Even Well-Funded IPOs Affected
The fintech industry is still experiencing layoffs. PayPal recently announced that it would lay off 2,000 full-time employees, which amounts to about 7% of its workforce. PayPal CEO Dan Schulman noted that while the company had made significant progress in reshaping and strengthening its cost structure over the past year, it had more work.
SoFi Technologies, an American fintech firm, also recently confirmed the layoff of fewer than 5% of its tech platform business unit employees. While fintech firms with less funding have also not been immune to the impact of the macroeconomic environment, well-funded companies like PayPal and SoFi have also been affected by Fintech layoffs.
DriveWealth, a global brokerage infrastructure firm, confirmed it had reduced its headcount by 20%. The company stated that the cuts were part of a strategic decision to evolve as a tech-focused organization with increased organizational agility.
Fintech companies are still experiencing layoffs, regardless of their funding. The most well-funded companies are the ones that have been affected the most. This may be because these companies have more resources and the ability to hire or because their layoffs are more high-profile.
In other IPO news, Marqeta agreed to get Power Finance, for 223 million dollars in cash. Marqeta’s CEO Simon Khalaf noted that the acquisition aimed to expand and accelerate the capabilities offered in its credit product.
Meanwhile, Twitter is reportedly working on introducing payments on its social media platform and has begun applying for regulatory licenses. The move is part of Twitter’s new CEO Elon Musk’s efforts to create new revenue streams, as the company faces a drop in advertising income. Apple is also set to launch its Apple Pay Later service soon, which was first reported in June 2021.
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