BaaS fintech Synapse lays off 40% of staff in fresh round of job cuts
US-based Banking-as-a-Service (BaaS) platform Synapse has laid off 86 of its employees, or about 40% of its workforce, in its second round of job cuts this year.
Synapse lays off 40% of staff
Commenting on the decision, Synapse CEO Sankaet Pathak says: “We made the difficult decision to reduce and restructure our team in areas that were staffed for unrealized growth or redundancy.”
The company adds in a statement that despite the layoffs, it has “a strong group in place” to manage its operations and customers.
Jason Mikula, publisher of Fintech Business Weekly, posted on X that alongside the job cuts, “one of the company’s largest clients, Mercury, gave notice of non-renewal and plans to move directly to Evolve”.
Synapse had previously announced a reduction and restructuring of its team back in June, which impacted 18% of its workforce at the time, citing macroeconomic conditions which had “begun to impact our clients and platforms, affecting our anticipated growth”.
Founded in 2014 and headquartered in San Francisco, Synapse’s BaaS platform enables companies across the world to launch payment, card issuance, deposit, lending, credit and investment products via APIs. It raised $33 million in a Series B funding round led by a16z in June 2019.
