Earnings Results: Affirm stock tanks after earnings whiff, as company plans to lay off 19% of staff

by | Feb 8, 2023 | Stock Market

Affirm Holdings Inc. announced plans to cut 19% of its staff Wednesday following an earnings report in which the buy-now-pay-later company came up shy with both its results and outlook. “The root cause of where we are today is that I acted too slowly as these macroeconomic changes unfolded,” Chief Executive Max Levchin told employees in a note about the layoffs that was also shared to Affirm’s
corporate site.

“Growing rapidly over the last few years, and especially through the pandemic, we consciously hired ahead of the revenue required to support the size of the team,” Levchin said, but rising rates have dampened consumer spending levels and upped Affirm’s cost of borrowing. Affirm had 2,552 employees as of June 30, 2022, according to its latest 10-K filing. “It is an economic reality that we have to live within our means and match growth of headcount with growth in revenue, but just for the record, what we’ve done is we’ve rolled back six months of engineering hiring,” Levchin said on Affirm’s earnings call, according to a transcript provided by AlphaSense/Sentieo. Shares were off 19% in extended trading Wednesday. See also: Disney stock soars as Iger plans 7,000 job cuts in return to earnings stage The company generated a fisc …

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