Portland, Oregon-based online bank Simple reduced its workforce by nearly 10 percent earlier this week, marking its second round of layoffs in 2017. According to a report in the Oregonian, the company is also letting go of five members of its executive team.
“We have been focused on growth instead of innovation,” wrote Josh Reich, Simple‘s chief executive officer and co-founder, in a blog post cited by the news report. “We have been acting like a bank instead of a technology company. And that changes today.”
The online bank said it will focus on updating some of its technology, including its goals feature which allows customers to track spending habits so they can meet financial goals. While the layoffs amount to 33 of its 350-strong workforce, Simple said it will offset some of the job reductions by hiring in different areas within the company.
Among executives leaving the company are its chief marketing officer, chief people officer, vice president of operations and vice president of engineering, according to the report. The company’s chief operating officer, Matt Compton, will also leave the upper management team once the overhaul of the business is finished. Compton will stay on as an advisor and member of the Simple board, noted the report.
“The changes for the company are really about focusing on building our product as a lean organization,” Compton noted in the news report. “Once we’re done with that, I’ll be transitioning out of my day-to-day role.”
According to Reich, the company has been focused on infrastructure and supporting customer growth, but has not been that focused on building new technology to help people manage their money, something it is now gearing up to do.
“We have not made good on our promise to change an industry that is failing them,” Reich said.
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