MainStreet, a California-based fintech that helps start-ups and small businesses find and claim tax credits and government incentives, has laid off roughly 30 percent of its workers,
The company says “today’s extraordinarily harsh market” is the reason for the layoffs.
CEO Doug Ludlow wrote on Twitter: “We took this action because we believe that there is a very strong chance that today’s incredibly rough market is only going to get worse, and potentially remain so for months, if not years,”
“We need to ensure that as a company we are in control of our own destiny, not subject to the whims and waves of the market. This reorg is one of the steps that put us on a near-term path to profitability and self-sustainability.”
There is no mention of the precise number of employees who will lose their jobs at MainStreet.
Ludlow added: “We did not take this decision lightly, and we are doing everything within our power to provide as much transition assistance (severance, health care, recruiter and job placement assistance) as is possible,”.
Since its inception in 2019, MainStreet claims to have helped over 2,000 businesses in the United States save over $100 million through suggestions on government tax incentives, treasury management, and savings on technologies that businesses use every day.
In January 2022, the company raised $2 million in a debt financing round, and in March 2021, it raised $60 million in a Series A round-headed by SignalFire.
The announcement comes after a slew of layoffs in the financial industry in recent days. BizPay, an Australian BNPL fintech, announced a 30 percent personnel reduction, while Robinhood is laying off 9 percent of its full-time employees.
Source: Fintech Futures