Things remain very tough in the finance and fintech industry. Various companies are forced to lay off employees, and Amount is the latest victim of this trend. The company will cut its workforce by up to 18% in the following weeks, making it one of the bigger layoff rounds to date.
Amount Has To Bite The Bullet
It is always unfortunate to see a young company lay off employees when financial situations sour. For Amount, the digital banking technology provider, it is an unfortunate outcome due to external circumstances. Various companies are forced to lay off employees given the macroeconomic circumstances, including fintechs, crypto firms, service providers, and even significant banks.
For now, there are still some unknown details regarding the decision by Amount. Its headcount will be reduced by up to 18%, which is rather steep. That means nearly one in five employees will be out of a job in the next few weeks. A harsh decision, but it is another example of how a “unicorn” company can fall from grace rather quickly if funds and expectations are not adequately managed.
Amount CEO Adam Hughs told TechCrunch:
“Due to the current macro-economic environment, we have decided to take some proactive adjustments to ensure Amount’s ability to thrive for years to come.”
Amount secured its unicorn status in late 2021 after raising $100 million in Series D funding. A portion of that funds was put aside to help the company expand its workforce across product, technology, and sales groups. It now seems that the hiring spree may have been a bit too aggressive, and laying off employees is the logical outcome. There is no word on whether Amount will raise additional capital at a lower valuation, though.