Greenlight, child-focused fintech startup, lays off 104 employees to optimize spending • TechCrunch
Greenlight, a fintech start-up offering debit cards to children, has laid off 104 employees – more than 21% of its total workforce of 485 employees – to “better align with ongoing operating expenses” in the context of the economic slowdown.
TechCrunch has learned of the layoff that was announced to its employees earlier this week. The startup later confirmed the development via email.
“The macroeconomic environment has impacted virtually every business, including Greenlight. We recently made the difficult decision to better align our day-to-day operating expenses with the current environment,” a Greenlight spokesperson said in a statement emailed to TechCrunch.
The spokesperson said affected employees would receive severance pay, extended medical coverage and career transition support. The startup announced the decision on Tuesday and now has a workforce of 381 employees.
“The company remains committed to its mission to help parents raise financially intelligent children. In 2023, Greenlight will focus on continuing to serve its growing customer base and finding new and effective ways to improve families’ financial literacy,” the spokesperson said.
Greenlight offers kids a debit card, banking app and financial education to make them financially smart and independent. The Community Federal Savings Bank issues the Greenlight debit card.
In December, the Atlanta-based startup launched a K-12 national standards-aligned financial literacy web library that will be free for schools, teachers, and students. In October, it also added family safety features to its subscription plan called Greenlight Infinity, priced at $14.98 per month for the whole family.
According to data available on Crunchbase, Greenlight has raised approximately $556.5 million in total since its inception in 2014. The funding included the $260 million Series D round announced in 2021 at a valuation of $2.3 billion. dollars.
Greenlight has become one of the latest startups to lay off staff during this difficult time. In recent days, startups such as Career Karma, Carta, and Coinbase have let go of their tens and hundreds of employees to cut expenses. Big tech companies, including Amazon and Salesforce, also laid off thousands of workers this month as the economy continues to struggle. Additionally, the growing economic downturn has impacted leading fintech startups, including Stripe, which laid off 14% of its workforce in November. The startup also reduced its internal valuation to $63 billion, TechCrunch reported earlier Thursday.