AFFIRM founder and CEO Max Levchin (MAX LEVCHIN)said that firing employees was the most difficult decision.
Layoff News: The CEO of the financial company Affirm wrote a letter to the shareholders and employees and told them that in the changing economic times, he took decisions at a very slow pace, due to which the company is standing at this stage today. In June 2022, there were a total of 2552 employees in the company, which will be reduced to only 485 after retrenchment.
Layoff News: Financial company Affirm told on February 8 that it is laying off 19 percent of the employees from the total workforce. The company has announced the layoff after the weak December quarter results. Affirm’s revenue and profit both came in below experts’ estimates. Shares of Affirm were down more than 17 percent after the results came out. Affirm founder and CEO Max Levchin said in a letter to shareholders on Wednesday, “This was the most difficult decision we’ve ever made at the company.” Levchin has also said that this deduction will be implemented with immediate effect.
He further informed that in June 2022, there were a total of 2552 employees in the company. Now only 485 staff will be left after retrenchment.
The company’s CEO Levchin also sent a note to employees on Wednesday, which he later made public. In this letter, he wrote, “In the early stages of the pandemic, the company hired more people than it earned to support the team. Then it was justified in terms of revenue growth.”
Levchin also wrote, “The reason we are where we are today is that I took action very slowly in view of the economic changes.”
How were the company’s results?
In the second fiscal quarter of 2023, the company had a loss of $ 1.10 per share. Whereas analysts had estimated that this loss could be 98 cents per share. The company has also failed to meet its earnings estimates. The company’s revenue stood at $400 million, while the estimate was $416 million.
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