Digital Bank Chime Trims 12% of Staff Amid Broader Tech Layoff Wave
Fintech company Chime lays off roughly 160 employees as part of a growing trend of job cuts across the technology sector. The challenger bank remains well-capitalized and continues hiring for select roles despite the reductions.
Digital banking firm Chime cuts 12% of its workforce, eliminating approximately 160 jobs as economic conditions worsen. A company spokesperson confirms the move but emphasizes that the challenger bank stays well-capitalized and continues to hire for select positions. Chime currently employs around 1,300 people overall.
This reduction is part of a massive wave of layoffs hitting the technology industry. Major public companies like Meta, Amazon, and Alphabet take steps to rein in expenses, while venture-backed private firms like Stripe and Dapper Labs also announce significant headcount reductions on the exact same day.
Despite reaching a $25 billion valuation just over a year ago and achieving EBITDA profitability during the pandemic, Chime faces the same financial headwinds as its peers. The fintech company experiences rapid growth by serving millennials who earn between $35,000 and $70,000 annually and seek fee-free alternatives to traditional banks.