Many large companies In the fintech world, he has stopped working in the last month. And Stroop’s announcement that it will lay off 14% of its workforce proves that Unicorn and Decacorn are not immune to difficult economic and fundraising conditions.
Stripe News Chime confirmed that 12% of its employees will be laid off this week, and that Brax will be cutting 11% of its workforce last month.
So what is going on here? Well, basically Spiros MargarisA fintech venture capitalist and founder of Margaris Ventures, the geopolitical market environment and inflationary pressures are currently slowing down some of the largest fintech companies. It affects the entire fintech startup industry and all industries globally as the big players have strategic influence over the smaller players.
“Firing good employees jeopardizes their strategy for making the grand vision they sold to the VC in the first place a success.” Spiros Margaris, Founder, Margaris Ventures
Cameron PeakA partner at Restive Ventures, who recently invested in AiPrise, says that much of what we’re seeing today “was the dynamics we saw playing out last year,” all “big funding rounds, sunny market forecasts and the belief that companies need more people to fuel their growth.”
The result, she added, is “a lack of discipline around the fundamentals of the company.” As the frenzy dissipated, companies “realized that they needed to downsize to focus more on profitability, not just ahead of their skis,” she says.
