Fintech company Plaid is laying off 260 employees, or about 20 per cent of its workforce globally, amid the global macroeconomic conditions.
Plaid CEO and co-founder Zach Perret said the company will offer 16 weeks of base bay for all departing employees, plus additional weeks for those who have been with Plaid for more than one year.
“Macroeconomic conditions have changed substantially this year. Despite being well-diversified across every category of financial services, we are seeing customers across the industry experiencing slower-than-expected growth,” said Perret in its letter to employees.
“The changes were incredibly tough, but they were also necessary. They will allow us to continue to operate from a position of strength so we can best support our customers and the millions of consumers we jointly serve for the long-term,” he added.
Plaid was last valued at around $13.4 billion.
The company said it will be paying the cash equivalent of six months of healthcare premiums for health insurance coverage for the impacted employees and their dependents.
“We will accelerate equity grants for Plaids who have been here more than one year to the February 15, 2023 vesting date. We will waive the one year cliff for Plaids with equity who haven’t yet reached their one-year vesting cliff,” said the CEO.
The company will also provide six months of career support and coaching services to actively assist everyone in their search for employment opportunities.
“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,” the CEO mentioned.
Another payments giant Stripe recently laid off more than 1,100 people.