Affirm announced it’s cutting 19% of its workforce Wednesday. The news came as it reported second-quarter earnings that fell below analyst estimates on both the top and bottom lines.
In his letter to shareholders Wednesday, Founder and CEO Max Levchin called the decision “the single most difficult one” of all the cuts the company chose to make, and said the layoffs would be effective that day. Affirm said in June 2022 it had 2,552 employees, which means the layoffs impact about 485 people.
Levchin told employees that laid-off workers in the U.S. would be offered a minimum of 15 weeks base pay as severance plus an additional week per year of tenure. Laid-off U.S. workers would also receive a $5,000 health stipend regardless of enrollment status, covering six months of employee healthcare. Non-U.S. employees would receive severance and healthcare benefits “in line with local practices,” Levchin said.
Levchin also said laid-off workers could keep their Affirm-issued devices to aid them in their job search, and they could access three months of career advising and an alumni directory.