Was this expected: Start-ups/Fintech Layoffs above-the-bar-high in First Quarter 2022

Back in 2021, fintech companies around the world accounted for 21% of the dollars raised globally. $121.6 billion was raised across 4,969 deals. And according to venture capitalists globally, this percentage goes to the fintech contributions to the economy so far. In October 2021, the fintech sector made a record boom of $91.5 billion in global funding, as well as the popularity of major fintech unicorns.

The fintech story has a different look this year. Fintech companies are laying staff off by the day, and this accounts for the third-largest number globally. 3,709 employees have been laid off. And this means 36,861 startup employees were laid off, and the fintech sector, accounts for 3,709 employees.

“To secure Bolt’s financial position and profitability, the company has decided to reduce the size of its workforce,” writes Bolt Chief Executive Officer, Maju Kuruvilla. “There is no good way to share news of a restructure but it’s in our culture to be committed to candor and care, today and always. We have an incredible team. The market needs us more than ever before. But today, my focus is on our people.”

Bolt is not the only startup affected by this. Netflix has its fair share as well. Netflix’s stock dropped poorly by 38% in the news. Over 200,000 subscribers were lost, and ten journalists from the editorial site, face layoffs according to reports. “We underwent a recent round of restructuring and layoffs, and the party line was it was to be more globally focused,” a source describes. “We thought that was the end of layoffs, and now I’m being told, ‘No, it’s not the end.’”

Closing thoughts

4,189 fintech employees were let go in a record of 45 events in the first half of 2022. This case is a close comparison to the 8,375 layoffs in the first half of the pandemic year.