Greenlight, a fintech startup offering debit cards to kids, has laid off 21% of its workforce – 104 employees out of 485 – due to the economic slowdown. This decision was made in order to better align with ongoing operating expenses.
TechGround learned this week that a layoff was announced to its employees. The startup later confirmed the news via email.
“Greenlight has felt the effects of the macroeconomic environment, leading us to make tough decisions on our operating expenses,” a spokesperson from Greenlight stated in an email to TechGround.
The startup, which now has 381 employees, announced Tuesday that impacted workers will receive severance, extended medical coverage and career transition support.
“Greenlight is devoted to helping parents teach financial literacy to their kids. In 2023, they will focus on serving their expanding customer base and finding additional ways to make a difference in family finances,” the spokesperson announced.
Greenlight equips kids with a debit card, banking app and financial education to empower them with financial smarts and independence. The Greenlight debit card is issued by Community Federal Savings Bank.
In December, Atlanta-based startup Greenlight debuted a free K-12 financial literacy library for schools, teachers and students. In October they added family safety features to their subscription plan Infinity ($14.98/month).
Greenlight, founded in 2014, has raised $556.5 million in total – the most recent being a $260 million Series D round at an impressive valuation of $2.3 billion announced this year.
Greenlight is the latest startup to join a growing list of companies letting staff go due to economic struggles. Career Karma, Carta, and Coinbase have all laid off tens or hundreds of employees recently. Amazon and Salesforce are among tech giants who have cut thousands this month. Stripe has been hit particularly hard, with 14% layoffs in November and a $63 billion internal valuation drop as reported by TechGround on Thursday.
