Buy-now, pay-later giant Affirm announced on Wednesday afternoon that it is cutting 19% of its workforce — about 500 people — alongside earnings results that missed analyst expectations.
The reduction will reset the company to the size it was "between 6 and 12 months ago," CEO Max Levchin"The root cause of where we are today is that I acted too slowly [as] macroeconomic changes unfolded," he said, citing a "mid-2022" shift as the Fed increased rates.toward the end of last year.That is, demand they would have seen in future years arrived all at once during lockdowns and stay-at-home periods.
When payment platform Stripe announced a 14% cut to its staff last fall, CEO Patrick Collison said they were “ ” about how quickly internet businesses would grow in the near term, expecting that pull-forward demand to continue.
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