Plaid said today that it has let off around 260 people, or approximately 20% of its staff, as it deals with the declining economy.
Plaid CEO Zach Perret stated in a staff message:
“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. I made the decision to hire and invest ahead of revenue growth, and the current economic slowdown has meant that this revenue growth did not materialize as quickly as expected.”
The co-founders William Hockey (left) and Zach Perret
All affected employees will get 16 weeks of basic salary as severance pay. Plaid employees who have worked with the company for more than a year will receive additional weeks. Plaid will also pay the financial equivalent of six months’ worth of medical, dental, and vision insurance payments for employees and their families.
It also promises to give six months of career counseling and coaching services, as well as six months of continuing mental health coverage, to all departing employees. In addition, the company claims to provide professional immigration advice for clients on work visas.
Plaid’s layoff comes during a particularly turbulent year for fintech startups. It joins GameStop, Bitso, Meta, and a slew of other Web3 companies in reducing staff during the market downturn. The company, which specializes in open banking APIs, released its first Web3 product in October of this year.
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