layoffs hit plaid fintech firm fires 260 employees to cut costs
The recent wave of layoffs has bewildered the global technology sector as the big league tech firms have decided to cut down their workforce in response to the chaos in economy causing inflation and looming recession. The latest to join the trend is financial technology firm Plaid that has decided to terminate working contracts of about 260 of its employees. This makes up for 20 per cent of its total workforce of Plaid of 1250 employees.
CEO of fintech firm Plaid, made the announcement in a blog post as he cited the reason as dropped revenue growth in the past year. CEO Zach Perret said, “Macroeconomic conditions have changed substantially this year. Despite being well-diversified across every category of financial services, we are seeing customers across the industry experiencing slower-than-expected growth. The simple reality is that due to these macroeconomic changes, our pace of cost growth outstripped our pace of revenue growth.”
“Today’s changes were incredibly tough, but they were also necessary. They will allow us to continue to operate from a position of strength so we can best support our customers and the millions of consumers we jointly serve for the long-term,” he added.
What led Plaid to the current situation?
The fintech company Plaid enables its consumers to link their financial information with certain apps and services. During pandemic the platform had a massive surge in use by both existing and new customers, thereby registering a significant surge in consumer demand. This triggered a rise in hiring by the company but with time the anticipated growth was not met through the year 2022, leading to a decline in revenue growth. The turn of events led to the company deciding to let go off 20 per cent of its workforce.
To the employees being terminated from the company, Plaid is offering separation pay, health insurance, career support, equity, mental health coverage and immigration counsel.