Fintech darling Simpl slams on the brakes, laying off 160-170 employees in a bid to stem cash burn. The surprise move comes as the Buy Now, Pay Later provider grapples with slowing user growth, according to Moneycontrol.
Engineering and product development teams bore the brunt of the cuts, suggesting Simpl is looking to streamline operations and potentially scale back on new feature development. This follows similar layoffs in March 2023, bringing Simpl’s total workforce reduction to a staggering 25% in a few short months. The cuts reportedly impacted core operations, interns, call center agents, and even the D2C checkout vertical, leaving many wondering about Simpl’s future direction.
In a brief company address, Founder and CEO Nityanand Sharma reportedly delivered the news via a prepared script, expressing regret over the layoffs. Simpl claims the cuts are a strategic pivot towards profitability by 2025. The company’s plan hinges on increased operational efficiency, streamlined workflows, and reduced overhead costs, hinting at a potential restructuring.
Simpl’s move raises eyebrows across the BNPL landscape. With regulators circling and user acquisition stalling, Simpl’s downsizing could be a canary in the coal mine for the entire BNPL industry. Whether this is a course correction for Simpl or a sign of deeper trouble in the BNPL space remains to be seen. One thing’s for sure, the BNPL party might be getting a little less lit.
