Fintech startup Plaid has axed 260 jobs due to a decline in its growth.
The shifting macroeconomic headwinds prompted the company to tighten its belt and shed 20 percent of the workforce.
In a memo, CEO Zach Perret said some staffers are eligible for 16 weeks of separation pay in addition to getting accelerated equity grants.
Mr. Perret said: “The simple reality is that due to these macroeconomic changes, our pace of cost growth outstripped our pace of revenue growth.
“I made the decision to hire and invest ahead of revenue growth, and the current economic slowdown has meant that this revenue growth did not materialize as quickly as expected.”
Plaid joins a number of fintech companies that have cut staff in recent weeks, including Stripe and Chime.
The moves come as its publicly listed counterparts’ valuations have fallen this year and venture capital funding for the sector has plummeted.
Based in San Francisco, Plaid offers connections between popular financial-technology applications and users’ bank accounts.
Perret said in his memo Plaid’s layoffs will affect staff in the UK and across Europe.
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The business also assured dedicated immigration counsel to those fired on work visas.
Mr. Perret said: “We have removed access to many systems for those of you that are leaving.
“I understand that this might make the process seem more abrupt, but I hope you will understand given the sensitive nature of data in our industry.”