Plaid layoffs are a hot topic on Thursday as the financial tech company cuts 20% of its workforce.
According to a recent memo from CEO Zach Perret, the fintech company has laid off 260 workers. The Plaid layoffs took place yesterday with the memo being shared with outside sources late on Wednesday.
Here’s a portion of Perret’s memo, as provided by San Francisco news station Kron 4.
“Today, I’m announcing the most difficult change we have had to make at Plaid to date […] I made the hard decision to reduce the size of our team, and in doing so, to say goodbye to approximately 260 talented plaids.”
What’s Behind the Plaid Layoffs?
According to the memo, Plaid is laying off employees after a hiring spree during the pandemic. The company cites increased consumer demand as the reason for hiring so many extra employees during the pandemic.
Unfortunately for those workers, times have changed. Perret points out that macroeconomic conditions are much different now. This has resulted in Plaid seeing its cost growth “outstrip” its revenue growth, explaining the reason for the layoffs.
Today’s news has Plaid joining a growing list of companies laying off employees. This has been happening as inflation continues to hurt the economy and the Federal Reserve tries to reel it in with increasing interest rates.
Traders looking for more of the most recent stock market news will want to stick around!
InvestorPlace offers deep dives into all of the latest stock market news for Thursday! A few examples include what’s going on with shares of GameStop (NYSE:GME), AMC Entertainment (NYSE:AMC) and Xpeng (NYSE:XPEV) stock today. You can find all that news at the following links!
More Thursday Stock Market News
- Why GameStop (GME) Stock Could Fall 75% From Here
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- Why Is Xpeng (XPEV) Stock Up 4% Today?
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.