Greenlight, a fintech startup providing debit playing cards to adolescents, has laid off 104 staff — or over 21% of its overall headcount of 485 staff — to “higher align with ongoing running bills” amid the industrial slowdown.
TechCrunch discovered in regards to the layoff that was once introduced to its staff previous this week. The startup later showed the improvement over an e mail.
“The macroeconomic setting has impacted nearly all companies, together with Greenlight. We not too long ago made the tough choice to higher align our ongoing running bills with the present setting,” a Greenlight spokesperson mentioned in a commentary emailed to TechCrunch.
The spokesperson mentioned the impacted staff would obtain severance, prolonged clinical protection, and occupation transition give a boost to. The startup introduced the verdict on Tuesday and now has a team of workers of 381 staff.
“The corporate stays dedicated to its project to lend a hand folks carry financially good adolescents. Transferring into 2023, Greenlight can be all for proceeding to serve its rising buyer base and discovering new, impactful tactics to fortify monetary literacy for households,” the spokesperson mentioned.
Greenlight provides adolescents a debit card, banking app and monetary schooling to lead them to financially good and unbiased. Group Federal Financial savings Financial institution problems the Greenlight debit card.
In December, the Atlanta-headquartered startup offered a web based monetary literacy library aligned with the Okay-12 nationwide requirements that can be loose to colleges, academics and scholars. In October, it additionally added circle of relatives security measures to its subscription plan known as Greenlight Infinity, which is priced at $14.98 per 30 days for the entire circle of relatives.
In step with the knowledge to be had on Crunchbase, Greenlight has raised about $556.5 million in overall since its inception in 2014. The investment integrated the $260 million Sequence D spherical that was once introduced in 2021 at a valuation of $2.3 billion.
Greenlight is among the newest startups to put off its personnel all over this difficult time. In the previous couple of days, startups corresponding to Profession Karma, Carta and Coinbase let many in their staff move to cut back bills. Giant tech corporations, together with Amazon and Salesforce, have additionally laid off hundreds of staff this month because the economic system continues to battle. Moreover, the rising financial slowdown has impacted distinguished fintech startups, together with Stripe, which laid off 14% of its team of workers in November. The startup additionally minimize its inner valuation another time to $63 billion, TechCrunch reported previous on Thursday.