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Digital bank Chime confirmed today that it is laying off 12 percent of its workforce, or about 160 people.
According to an internal memo obtained by TechCrunch, Chime co-founder Chris Britt said the move is one that will help the company thrive “regardless of market conditions.” In the memo, Britt said he and co-founder Ryan King are realigning transaction costs, reducing the number of contractors, adjusting workplace needs and renegotiating vendor contracts.
“The changes will help, but as we increase our focus and move toward profitability, we will need to adjust the size of our company,” Britt wrote in the memo. Chime was one of the first neobanks to record EBITDA profitability, a milestone it shared two years ago when it reached $14.5 billion. The final public price was $25 billion.
The co-founder added that the startup was “well-capitalized,” but financial market volatility was the reason for these changes.
A Chim spokesperson reiterated this view in an email: “Given the current market dynamics, we are realigning our organization to fully align with our company’s priorities.” As a result, we are hiring to select others and eliminating some positions.
A company note, Chime’s pause on its official initial plans, suggests that growth trends may change.
Since 2012, Chime has raised a total of $2.3 billion in funding, Crouchbase reports.
The Information first reported the news.
This is a developing story.
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