Fintech firm Plaid lays off 260 employees

Plaid, a firm that connects banks and fintech firms, laid off about 260 employees as it grapples with the slowing economy. 

"The simple reality is that due to these macroeconomic changes, our pace of cost growth outstripped our pace of revenue growth," Plaid CEO Zach Perret said in a message to employees. "I made the decision to hire and invest ahead of revenue growth, and the current economic slowdown has meant that this revenue growth did not materialize as quickly as expected."

Departing employees will receive 16 weeks of pay, six months of health care and career support as part of their severance packages. Plaid did not respond by time of publication to clarify which departments were most affected by layoffs. 

Plaid joins Koinly, GameStop, Bitso, Meta and numerous other web3 firms that are reducing headcount amid the market downturn, which began in May following the Terra ecosystem collapse. The firm, which focuses on providing open banking APIs, launched its first web3 product in October of this year.