Fintech layoffs: 100+ fintech companies fired staff in 2022/23
It's a scary time to be in fintech. Sure, there are firms paying hundreds of thousands of dollars, but job security is at a very serious low. A recently updated, comprehensive list of tech company layoffs from Crunchbase has illustrated just how serious it is - over 100 fintech companies have conducted layoffs since the start of 2022.
At least 12 of those fintechs released over 200 staff, with many more releasing over 100 or an "unclear" amount. The most egregious offenders were, of course, in the crypto industry, where tanking coin valuations and abundant scandals have wracked public perception. Kraken and Coinbase both laid off approximately 1,100 people.
7 of the fintechs on the list had to close their doors for good too. For companies whose headcounts we can estimate, the largest firm to do this is crypto firm BitWise, which laid off all 900 of its staff last month. Fintech compensation heavily relies on stock payments, so the prevalence of these bankruptcies is incredibly worrying.
The key issue is, it's not just firms in underperforming sectors that have had to lay off staff. Both Stripe and Plaid are two of the most successful and highest paying fintechs in 2023, but both have laid off staff, 1000 and 260 staff respectively.
Should you be worried?
Yes and no. We're not quite out of the woods, but the signs are gradually improving. 59 of the 100+ sets of layoffs all happened in 2022 and, since May, only 11 fintech companies have conducted layoffs.
The culture in fintech is also very clearly shifting. A number of the top firms are being more aggressive in bringing staff into the office and, for crypto in particular, roles appear to be increasingly demanding.
Shawn Rutter, managing director for fintech recruitment firm Excelsior Search, says "most fintechs that have trimmed their workforce are now at a sustainable level." However, he notes that for "startups relying on growth funding could yet see more layoffs if the environment doesn't improve."
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