It gives them a chance to avoid the dreaded “down round.” That is a lower valuation stage. It is lower than in the prior stage. Every fintech company seems to be a candidate for layoffs. Some of the largest private fintech companies have avoided cuts so far. Stripe, Chime, Plaid and Ramp have avoided layoffs.
Get medical attention. If you are experiencing bloating. A medical professional says bloating does not always relate to an underlying condition. Eating too fast can result in bloating. So do dehydration, overfeeding, and too much fatty food. Certain foods like beans, vegetables, high-fibre foods, and pregnancy can cause bloating.
Get a professional diagnosis. If you need home remedies, clevelandclininc.org recommends antacids. Regular exercise. Exercise strengthens your body. It will combat abdominal bloating. If you are constipated, you will not get relief until you poop. If it does not go away, seek medical attention.
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On The One Hand
That is what some bloated Fintech firms did. They sought professional advice. They have poohed. They laid off employees. Forbes reported that as venture investment dries up, Fintech start-ups are cutting employees to survive a prolonged economic downturn. It claimed that 2021 was the year of plentiful venture capital and bloated valuations in Fintech. The current season is the year of downsizing.
Incumbent Fintech firms like Robinhood, Klarna and Coinbase have announced layoffs. They are feeling the squeeze. They are cutting staff to preserve cash. To stay alive. Some startups are changing their strategy, too. They are shedding workers in some departments while hiring in others. Bloated valuations in some of these Fintech firms have led to this drastic measure.
This measure allows them to kiss profitability. It gives them a chance to avoid the dreaded “down round.” That is a lower valuation stage. It is lower than in the prior stage. Every fintech company seems to be a candidate for layoffs. Some of the largest private fintech companies have avoided cuts so far. Stripe, Chime, Plaid and Ramp have avoided layoffs.
On The Other Hand
In Nigeria in 2020, many Fintechs have laid off their staff. Obviously, they are experiencing difficulty. You know, Fintech start-ups require loads of cash to run, to overcome economic meltdown. Fintech start-ups must shun frivolity if they will survive the next year. Here is the prescription: Keep low cost.
In this instance, Renmoney has laid off half of its staff. In an email from the company’s CEO, Kieran Donnelly, the action was “a strategic change in how we conduct our business.” The company said it would not pay the salaries of 391 staff. Paga has also cut 50 per cent of staff salaries. Many other Fintech companies have toed this line. Seun Oyajumo, a private wealth executive said the strategy is about “cash flow.”
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A study by Harvard Business School’s Christopher T. Stanton said that the conventional wisdom of laying off employees during a downturn is the correct decision. Many Fintechs in Nigeria are struggling for survival. This is due to dwindling revenue and economic slowdown.
A report by FintechNGR and EY indicated that despite the considerable increase in investment, access to late-stage and growth capital remains a challenge for Nigerian Fintechs.
From the sideliner
Is your Fintech start-up experiencing bloating?
What is your solution?
We have to pooh.
What do you mean you have to “poo?”
We must lay off some employees.
Is there another way to cushion the effect of bloating?
You must poo.
Do you mean there is no other remedy?
That is what the doctor recommends.
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