Plaid Lays Off 260 Employees (20% of Staff)

TechCrunch | Mary Ann Azevedo | Dec 7, 2022

Layoffs - Plaid Lays Off 260 Employees (20% of Staff)Plaid, a Fintech decacorn, is laying off 260 employees, or about 20% of its workforce, the company announced today

  • In April of 2021, Plaid raised a $425 million Series D led by Altimeter Capital, which valued the company at around $13.4 billion. This was after its deal to be acquired by Visa for $5.3 billion fell through due to regulatory concerns.
  • Hired ahead of revenue growth: In a letter to employees that was posted on Plaid’s website, CEO and co-founder Zach Perret said the company saw a rapid increase in usage by its existing customers, a large number of new customers and “substantial revenue acceleration” during COVID.  As such, the company “hired aggressively” to meet customer demand and invest in new products. However, macroeconomic shifts resulted in Plaid customers experiencing “slower-than-expected growth,” causing the company to backpedal.

See:  Plaid Officially Opens it’s Canadian Office and Announces RBC Data Sharing Agreement

  • What they get:
    • Severance: All impacted employees will get 16 weeks of base pay in severance. Those who have been with Plaid for more than one year will get additional weeks.  Plaid will also be paying the cash equivalent of six months of healthcare premiums for medical, dental and vision insurance coverage for employees and their dependents.
    • The company is also accelerating equity grants for employees who worked at the company for more than one year to the February 15, 2023 vesting date. It is also waiving the one-year cliff for workers with equity who haven’t yet reached their one-year vesting cliff.
    • Additionally, it says it will provide six months of career support and coaching services as well as six months of continued mental health coverage for all departing employees.

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