Chime is reportedly the latest in a list of fintechs that are exploring options to cut costs. Credit: Suiren2022/commons.wikimedia.org.

American digital bank Chime has reportedly decided to slash its 1,300-strong workforce by 12% amid uncertainties in the financial sector.   

TechCrunch, quoting Chime co-founder Chris Britt’s statement in an internal memo, said he along with co-founder Ryan King are working on “re-calibrating marketing spend, decreasing the number of contractors, adjusting workspace needs and renegotiating vendor contractors”.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Britt termed the move to cut over 160 jobs will enable the firm to “thrive regardless of market conditions”.

“The changes will help, but we also need to adjust the size of our organisation as we increase our focus and forge our path to profitability,” he noted.

TechCrunch quoted a Chime spokesperson as saying: “As we look at current market dynamics, we are adjusting our organisation to be fully aligned with our company priorities.

“As a result, we are eliminating some positions, while still hiring to select others.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

However, details regarding impact on C-level executives, salaries and the firm’s profitability were not disclosed.

Chime, founded in 2012, is the latest addition to the list of fintechs that are exploring options to cut costs following soaring inflation. Fintech firms such as Swedish payments firm Klarna and buy-now-pay-later firm Affirm Holdings are also treading similar path.

In August last year, Chime was valued at $25bn in a funding round led by Sequoia Capital Global Equities.

Earlier this year, Chime Financial reportedly selected Goldman Sachs Group to assist it with its initial public offering (IPO).

It was said that the digital banking provider could seek a valuation of nearly $40bn through the IPO in New York.