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 fintechs 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 fintechs are 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.”
$AFRM, $UPST: Thousands of Fintech Jobs Are Gone as Companies Cut Costs for First Time