As Layoffs Hit Fintech Lenders, It’s Not All Roses

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Underneath all the good news about hiring sprees, loan volume surges, and profitability, is ironically just the opposite. Some fintech lending darlings of Wall Street have abruptly changed gears over the past few months and are now in a state of self-preservation. Is this a normal business cycle or is something else going on here?

4/19/22 – lays off 3,900+ workers, a figure that includes a round that began in December 2021.

5/24/22 – Klarna lays off 10% of workforce.

6/15/22 – Coinbase announced plans to layoff 18% of its workforce.

6/21/22 – NextPoint announces end of LoanMe business, citing “market conditions.”

6/27/22 – Amount lays off 18% of workforce.

7/13/22 – Kabbage confirms it is facing two DOJ investigations over its handling of PPP loans.

7/27/22 – Shopify Capital grew originations but Shopify’s parent company announced it was laying off 10% of employees due to lower than expected post-pandemic e-commerce sales.

7/29/22 – Clearco announces major layoffs (125 employees), citing inflation, interest rates, European challenges, and a slowdown in e-commerce growth.

7/29/22 – Amazon shrank its staff by 100,000 employees.

Last modified: August 1, 2022

Category: Business Lending

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