layoffs: Neobank Fi lays off 10% of workforce; lags behind on fiscal revenue target

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Neobanking platform Fi has undertaken a fresh set of layoffs, impacting 10% of its workforce, or roughly 30 individuals, cofounder and chief executive Sujith Narayanan told employees in a 30-minute all-hands meeting held on Wednesday.

The layoffs have been undertaken to increase its cash runway from almost one and a half years currently to two years, according to three employees who were present in the town hall.

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The move was also prompted by the company’s failure to achieve its bare minimum revenue target for the first half of this fiscal, Narayanan told employees as a part of the meeting.

The layoffs are expected to impact employees across functions including engineering, product, analytics and process excellence, among other teams.

As part of the restructuring exercise, the company is also expected to realign its focus on products and services that are currently generating revenues.

These include its personal loan product as well as its credit card offering, which were launched almost six months ago, two people told ET requesting anonymity.

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“There was a sudden invite sent to everyone today for 30 minutes. In the meeting, the CEO (Sujith Narayanan) said that the company has fallen behind by almost 30% from reaching its bare minimum revenue target. He also said that the company would like to keep at least a two-year long runway on the bare minimum,” said one of the employees present in the town hall, on condition of anonymity.Moneycontrol first reported about the layoffs at Fi on Wednesday evening.

When ET reached out, Narayanan confirmed the development and said, “We’ve recently undertaken a strategic restructuring, prioritising our focus and resources on key growth areas. This restructuring will enable us to double down on our core product features, streamline operations, and ensure a sustainable future. Consequently, this will impact roughly 10% of our workforce spanning diverse roles.”

Narayanan added that the company will be providing its departing colleagues multiple months of severance, extended healthcare provisions, and extended ESOP (employee stock ownership plan) vesting.

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