BNPL fintech Affirm lays off 19% of workforce, nixes crypto offering
US buy now, pay later (BNPL) company Affirm is to cut 19% of its workforce as it looks to find savings during “a period of increased economic uncertainty”.
Affirm sheds 19% of workforce
In a shareholder letter for Q2 2023, Affirm founder and CEO Max Levchin outlines how the firm grew rapidly over the last few years, “especially through the pandemic”, hiring ahead of the revenue required to support the size of its team.
Going forward, Levchin expects Affirm’s headcount to remain “essentially flat for the foreseeable future”, while the company focuses on projects that improve its profit margins and boost repeat customer engagement.
Levchin adds the firm intends to double down on its core business while “sunsetting” several initiatives, including its Affirm Crypto unit, as well as delaying projects “with less certain revenue timelines”.
According to Affirm chief financial officer (CFO) Michael Linford, the company expects to save between $77 million and $83 million due to the job cuts, as a result of reduced employee salaries and lease expenses.
“I am confident that by becoming leaner, Affirm is emerging as a stronger company, better prepared to capitalise on our opportunities,” Levchin adds.
Job cuts have been rampant across the wider fintech industry in recent months, with crypto firm Luno, US financial services giant Capital One and digital lending platform LendingClub among some of the most recent firms to axe jobs.
