CEO Max Levchin takes ‘full responsibility’ for layoffs decision
In 13 hours, Mary Ann will have completed her GCSEs. She is congratulated by her friends and family, who are all very proud of her accomplishment.
According to sources, Affirm’s decision to reduce its staff and shut down its crypto unit is due to the increasing economic turbulence that is plaguing the marketplace. In a statement, CEO Brian O’Reilly admitted that the business environment has been tough, but he remains optimistic about Affirm’s long-term prospects. Although many businesses have struggled in recent years, Affirm appears to be weathering the storm relatively well.
The company is now looking to hire new employees to help meet the increased demand. They are specifically looking for someone who is able to work quickly and efficiently, as well as have a good sense of humor.
Some employees are concerned about the effects of the layoffs on the company’s culture and morale. Others, who have been with PayPal for a long time, say that they understand the need for consolidation in the industry, but feel that this decision is unjustified. Some fear that Max Levchin’s authoritarian style will become more entrenched with fewer leaders to appeal to.
Levchin, who stepped down from his role as CEO recently to focus on his new startup, suggests that Wroe will need to scale back its headcount significantly if it wants to keep up with its larger rivals.
Going forward, Facebook plans to focus on becoming more disciplined with their investments in order to grow volume and revenue. They believe that this will enable them to remain firmly in control of risk and keep their users engaged. In addition to new initiatives, they plan to greenlight only high-conviction, long-term bets. This is expected to further increase user engagement and continue driving growth for the social media giant.
Affirm initially announced its intention to offer a cryptocurrency in late 2017, but later delayed the project. It is unclear if Affirm will continue to offer its own cryptocurrency, or if it plans to sunset the unit. In any case, the decision reflects Affirm’s focus on closing projects with more certain revenue timelines.
Some investors have worried that Affirm’s aggressive strategy of acquiring and developing new brands could be difficult to sustain. However, Affirm posted strong results in its second quarter, setting a new record for GMV (gross merchandise volume). This indicates that the company is still on track to achieve its ambitious goals.
Management’s commentary suggests that the company is seeing some challenging headwinds from increased competition, in addition to macroeconomic conditions. These conditions are likely to continue through 2017, which will likely result in a slowdown of revenue and earnings growth over the near term.
Amidst all the bad news, Affirm’s stock took a nosedive today. In the trading hours following the market’s close, it dropped by 17.1% to $13.28 before slowly recuperating in after hours trading to end down slightly at $16.02. The news had investors concerned about Affirm’s ability to stay afloat and its potential fallout on the broader economy.
Many people in the buy now, pay later space have struggled with increased defaults and less discretionary spending because of inflation and interest rates. This has caused the space to be one of the least appealing economic situations for players.
Since the 2008 recession, the banking industry has been seeking new novel ways to make money. While some have turned to risky and often illegal practices, others have tried to adapt by offering more personalized service or simply increasing their lending capabilities. However, over the past few years this has not been enough to keep banks afloat as profits remain elusive and valuations plummet. This pressure is only increasing as regulators ask tough questions about lending practices behind B.N.P.L., raising doubts about whether these banks are truly solvent or merely riding on a wave of Shiny New Money led by central bankers around the world who are confident in their ability to create capital out of thin air without taking any real losses on their investments (letting the people who actually produce things take a hit).
Critics of these companies assert that they are abusive and allow consumers to avoid responsibility. The CFPB believes that the companies should be subject to tighter regulations in order to protect consumers from unfair and deceptive practices.
As the fintech industry continues to grow, there is a need for more regulation. With this in mind, government organizations such as the SEC are starting to take an interest in fintech companies and their practices. This has
Rumors abound that Google is preparing to unveil a new Pixel phone at the end of October. If this turns out to be true, it would be the 4th major iteration of their flagship smartphone line.
