Fintech layoffs are a hot topic among traders today, with both Stripe and Chime announcing job cuts.
Let’s start with Stripe, which is cutting 14% of its workforce. This totals 1,120 of the company’s 8,000 employees. These job cuts come after Stripe went through a massive hiring spree during the pandemic.
Stripe added so many employees during the Covid-19 lockdowns because customers were turning toward e-commerce for their shopping needs. However, with the economy turning toward a recession and inflation curbing luxury spending, the company is readjusting its headcount.
What About Chime?
It’s a similar story with Chime, with the fintech company’s layoffs covering 12% of its employees. However, the big difference here is this only results in a workforce reduction of about 160 people.
Just like with Stripe, Chime saw major growth during the pandemic. While laying off employees, however, Chime notes it’s still hiring for other specific positions.
News of these two fintech companies enacting layoffs comes alongside other tech companies doing the same. For example, Lyft (NASDAQ:LYFT) recently announced plans to cut its workforce by 13% due to economic pressure.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.