Digital banking platform Chime, along with the online lender Upstart and Intuit-owned Credit Karma, are the latest fintech companies to reevaluate their workforce due to the prevailing economic challenges.
Chime has announced a reduction of 12% in its workforce, impacting over 150 employees. Despite earlier plans for a $40 billion IPO that were ultimately shelved, the company asserts it remains in a strong financial position.
Upstart, the US-based online lender driven by artificial intelligence and founded by several former Google employees, has also made cuts, reducing its staff by 7%, which translates to approximately 140 jobs. In a recent SEC filing, Upstart attributed these layoffs to broader economic conditions and a decrease in loan volume on its platform as interest rates continue to rise.
Credit Karma, known for its credit monitoring and building services and acquired by Intuit in a multi-billion dollar transaction, is currently pausing new hiring. As reported by Bloomberg, this decision comes amid a downturn in revenue; however, the company is still replacing departing employees and will not be implementing salary reductions.
For those interested in exploring more opportunities in the fintech sector, check out the Finextra Job Board, which features a variety of job listings.