It’s no mystery that the pandemic has had an adverse effect on the global economy. Consumers are spending less and many businesses are struggling to keep their doors open. Fintech company Affirm is feeling the pinch as well. On Wednesday, the company announced that it will be decreasing its staff by 20%.
Affirm also said that it will be shutting down its cryptocurrency service affirm crypto. The news comes as a blow to the fintech industry, which has been booming in recent years. However, it’s not all bad news. Affirm CEO and co-founder Max Levchin said that the company is still well-positioned for growth.
He has confidence in the company’s long-term opportunity as it built a strong foundation. However, time will tell how well Affirm weathers this latest storm. In the meantime, the company’s workers will be feeling the pain of these job cuts.
What went wrong?
Being a fintech company these days is not easy. With so many obstacles to overcome, it’s understandable why consumer spending is dropping. Apart from that Affirm shares are also slumping today. After closing down nearly 7% on Wednesday, the company’s shares fell further in after-hours trading, dropping another 17.1%.
These obstacles comes as a result of Affirm being unable to handle a large workforce and to decrease the burden and reduce the expenses the company is forced to take this hard decision. While this may be tough news for employees, it’s important to remember that companies like Affirm are working hard every day to find solutions to these problems and make life better for everyone.