The news: Affirm will lay off 19% of staff, shut down its cryptocurrency business, and embark on a restructure that could cost $39 million after a disappointing Q2 (ended December 2022).
Q2 earnings at a glance:
Words come back to bite: Affirm CEO Max Levchin asserted confidently that a recession would prove the company’s strength. But mounting losses, mass layoffs, and canning its crypto unit highlight that economic uncertainty has hurt performance.
What next? Levchin said that a major restructure would create a “nimbler team” as the company targets profitability by the end of fiscal 2023.
Pivoting to a more cautious approach should cut costs and minimize losses as firms contend with challenges ahead:
Related content: Check out our US Buy Now, Pay Later Forecast 2022 to learn about the factors that will affect growth in the space through 2026.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
11 Times SquareNew York, NY 100361-800-405-0844