BaaS fintech Unit to reduce workforce by 15%
Banking-as-a-Service (BaaS) start-up Unit has decided to lay off around 15% of its staff in response to “slower than expected revenue growth”.
Unit to lay off 15% of staff
Explaining their rationale for the job cuts in an internal note made public “in the spirit of transparency” this week, Unit co-founders Itai Damti and Doron Somech said: “Banks in the fintech ecosystem have slowed down in the last year due to increased regulatory scrutiny.
“While we believe that the slowness is temporary and Unit will actually benefit from the resulting regulatory clarity, it will take time.
“While we could choose to raise additional capital in the future, we’re executing on a plan to become profitable without the need to do it.
“This independence will help us realise our mission – powering modern financial experiences – reliably and for the long term.”
Unit previously raised $100 million through a Series C round in 2022 at a valuation of $1.2 billion.
Founded in 2019 to enable businesses to integrate financial services into their various products, Unit has not disclosed the number of employees impacted or how many remain, and declined to provide additional comment on the matter when queried by FinTech Futures.
The New York-headquartered start-up becomes the latest BaaS fintech to downsize, with Treasury Prime also adjusting its “staffing needs” in March. Banking Dive reported at the time that the cuts could affect roughly half of the firm’s approximately 100 employees.
