Fintech Startup Aspiration Plans To Lay Off More Than Half Of Staff

Fintech startup Aspiration, which provides socially responsible banking and investment services, has announced plans to lay off more than half of its staff. The move comes as the company shifts its focus towards its core business and away from its short-lived, failed experiment with a pay-what-you-want model for its banking services.

Aspiration CEO Andrei Cherny cited “unforeseeable shortfalls in our core business” as the reason for the layoffs. He stated that the company's core business is strong, but that the pay-what-you-want model was not sustainable in the long-term.

Cherny also announced that Aspiration will be closing its Summit checking account, which was offered under the pay-what-you-want model. Customers with Summit accounts will be migrated to Aspiration's Spend and Save account, which has a monthly fee and offers a higher interest rate.

The layoffs will affect more than 100 of Aspiration's approximately 200 employees. The company plans to provide severance packages and support for impacted employees.

Aspiration was founded in 2013 with a mission to provide socially responsible banking and investment services to customers. The company has raised over $250 million in funding and has attracted more than 1.5 million customers.

While the news of the layoffs is certainly a setback for Aspiration, the company remains optimistic about its future. In a statement, Cherny emphasized the company's commitment to its core business and its mission of providing socially responsible banking and investment services.

“We remain fully committed to our mission of democratizing access to financial opportunity and environmental responsibility,” he said. “We are confident that the steps we are taking will enable us to better serve our customers and achieve long-term success.”

The layoffs at Aspiration are the latest in a series of workforce reductions across the fintech industry, as companies adapt to changing market conditions and customer demands. Despite the challenges, the fintech sector remains a hotbed of innovation and growth, and is poised to continue disrupting traditional financial services in the years to come.

Content Source: https://businessdor.com/fintech-startup-aspiration-plans-to-lay-off-more-than-half-of-staff/

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