BM Technologies Cuts 25% of Workforce Amid ‘New Market Realities’

Philadelphia-area digital banking platform BM Technologies (BMTX) is set to cut 25% of its staff.

The layoffs are part of what the company called a “profit enhancement plan” that will save BMTX $15 million, according to a Monday (Jan. 30) news release, happening amid a larger wave of job cuts across a number of sectors.

“The FinTech industry is still in its early stages and continues to grow, but market dynamics are substantially different than they were a year ago,” said Luvleen Sidhu, BMTX’s CEO, founder and chair, in the release. “Companies across the spectrum must adjust to new market realities, including the current high interest rate and inflationary environment.”

Last year saw tech companies eliminate more than 153,000 jobs, a trend that has continued this year. So far in January, Microsoft has announced 10,000 job cuts, Google parent Alphabet announced it was slashing 12,000 jobs, and Amazon said that the layoffs that began in November will eventually total 18,000.

But it’s not just giant tech companies feeling the pinch. Last week saw news that one-click checkout startup Bolt had laid off 10% of its employees, meaning that the company has reduced its headcount by more than half since last May.

Bolt CEO Maju Kuruvilla attributed the latest cuts to “quite a few” company projects not working out and some proposed deals with retailers being delayed.

When the company began to cut staff last year, the CEO said in a memo to employees that it was “no secret” that the market conditions in the industry had been changing.

“In an effort to ensure Bolt owns its own destiny, the leadership team and I have made the decision to secure our financial position,” Kuruvilla said at the time.

This month also saw Goldman Sachs announce plans to eliminate 3,200 jobs, its largest round of staff cuts ever, while Bank of America said that it would pause hiring for most positions.

In addition to the layoffs, BMTX announced in the release a series of leadership changes. Jamie Donahue, the company’s chief technology officer, has been elected company president, while Robert Ramsey, BMTX’s chief financial officer, will move to a “new corporate development role.” Taking his place is James Dullinger, the company’s chief accounting officer.