Greenlight, a fintech startup that provides debit cards for children, has laid off 104 employees (more than 21% of its total workforce of 485). This is to “better manage ongoing operating costs” amid a slowing economy.
TechCrunch learned of the layoffs announced to employees earlier this week. The startup later confirmed the development via email.
“The macroeconomic environment is impacting virtually all businesses, including Greenlight. I recently made the difficult decision to adjust to
A spokesperson said affected employees will receive severance pay, extended medical coverage, and career transition support. The startup announced the decision on Tuesday and now has 381 employees.
“We remain committed to our mission to help parents raise financially smart children. We will continue to focus on finding new and impactful ways to improve,” said the spokesperson.
Greenlight equips kids with debit cards, banking apps, and financial education to help them become financially smart and independent. Community Federal Savings Bank issues the Greenlight debit card.
In December, the Atlanta-based startup introduced a web-based financial literacy library aligned with the K-12 national standards. This library is provided free of charge to schools, teachers and students. Also in October, we added family safety features to our subscription plan called Greenlight Infinity for $14.98 a month for the whole family.
In total, Greenlight has raised about $556.5 million since its inception in 2014, according to data available on Crunchbase. The funding included his $260 million Series D round at a $2.3 billion valuation announced in 2021.
Greenlight has emerged as one of the latest startups to lay off staff during this difficult time. Over the past few days, start-ups like Career Karma, Carta and Coinbase have sent dozens to hundreds of employees to cut costs. Big tech companies such as Amazon and Salesforce have also laid off thousands of employees this month as the economy continues to struggle. Additionally, a growing economic slowdown is affecting prominent fintech startups including Stripe, which laid off 14% of his workforce in November. The startup has also slashed its internal valuation further to $63 billion, TechCrunch reported Thursday.
