Silicon Valley fintech SynapseFI initiates layoffs amid pandemic-induced fintech struggles

This story was delivered to Insider Intelligence Fintech Briefing subscribers earlier this morning.Insider Intelligence publishes hundreds of insights, charts, and forecasts on the Fintech industry with the Fintech Briefing. You can learn more about subscribing here.The San Francisco-based fintech has cut its staff by about half and signaled its intention to move more of its…

Silicon Valley fintech SynapseFI initiates layoffs amid pandemic-induced fintech struggles

This story was delivered to Insider Intelligence Fintech Briefing subscribers earlier this morning.Insider Intelligence publishes hundreds of insights, charts, and forecasts on the Fintech industry with the Fintech Briefing. You can learn more about subscribing here.The San Francisco-based fintech has cut its staff by about half and signaled its intention to move more of its workforce to Texas in response to the pandemic, according to Business Insider. Synapse offers payment, deposit, lending, and investment products as APIs to financial services clients, enabling them to build out their service offerings on top of Synapse’s banking infrastructure, and it counts small banks and fintechs among its customers.

Business Insider Intelligence

Synapse was on a strong growth path, gaining $50 million through successful raises in 2018 and 2019, but it has been going through a challenging period recently: A gender bias lawsuit was filed against the CEO in December 2019, alongside persistent stories circulating of employee dissatisfaction with the management style and culture.Synapse isn’t alone in laying off staff amid the economic uncertainty caused by the pandemic. Trimming its workforce is likely a byproduct of the pandemic creating an uncertain environment for fintechs and small banks, which make up a large proportion of Synapse’s customer base. Equally, global fintech funding has declined and isn’t expected to return to pre-pandemic levels in the near future, so fintechs are likely striving to d
Read More From Publisher