Privately held Plaid has joined the wave of technology companies trimming their forces, announcing plans Wednesday to lay off about 260 workers.
Chief Executive Zach Perret detailed the cuts in a message to employees that was posted on the company’s corporate site. Like numerous other tech executives recently, he explained that Plaid made hiring moves in the wake of booming, pandemic-fueled growth that no longer align with the economic reality.
“Macroeconomic conditions have changed substantially this year,” he said. “Despite being well-diversified across every category of financial services, we are seeing customers across the industry experiencing slower-than-expected growth. The simple reality is that due to these macroeconomic changes, our pace of cost growth outstripped our pace of revenue growth.”
The layoffs “will allow us to continue to operate from a position of strength so we can best support our customers and the millions of consumers we jointly serve for the long term,” Perret continued.
The cuts represent about 20% of the company’s count of roughly 1,250 employees.
Plaid, which enables consumers to link their financial information with apps and services that seek to access it, was valued at $13.4 billion in an April 2021 funding round. That came shortly after Visa Inc.
and Plaid mutually agreed to call off their planned merger arrangement, which had been the subject of regulatory opposition.
Other companies that have announced recent layoffs include Pinterest Inc.
and Meta Platforms Inc.
the parent company of Facebook and Instagram.