Tifin – The Fintech startup based out of Boulder, Colorado backed by JPMorgan Chase, Franklin Templeton has decided to lay off more than 10% of its workforce.
Vinay Nair, CEO of Tifin had sent an email on Thursday, across the company sharing the update mentioning 21 people were impacted by these layoffs which is more than 10% of the company’s current workforce.
“This adjustment did however come with ~21 people no longer being part of TIFIN in the US. For a firm of our size, this is more than 10% of our team.“
In the email which was seen by layoffstracker – submitted as a tip (Thanks to the Patron). Vinay goes on to mention that in addition, the senior members of the company have decided to take a 20% pay cut for the rest of the year.
“In addition, I have asked the senior most 9 members (including me) at TIFIN to take a 20% pay cut for the rest of the year to enhance our dry powder.“
The email also notes that they had to part ways with some of the new team members – Indicating the company may be in focus to slow or freezing its hiring until the economic conditions improve.
“Like every value that is truly upheld, this comes at a price. This meant we had to part ways with some of the new team members, despite them being above our standard quality threshold – and you know that is high. We had a target cost and we did this exercise across functions with duration as the main variable and only the absolute stars made it through this unreasonably tough standard.”
It is also to note that the data-driven company was valued at $842 million just last month after its series D funding round of $109mn backed by Motive partners and Franklin Templeton.
Vinay credits the decision to the coming economic conditions – “In the last Townhall, I had shared how we are preparing for the coming economic conditions, and how we could turn what is distressing for most, into an opportunity for us.”
More of the email from Vinay Nair-
” I wanted to share an update. After capitalizing the business with our series D, we have now completed the process to rightsize our cost structure for the current environment.
We started with an annualized cost structure of ~74mm and have made adjustments to now decrease this to ~64mm. WE ARE DONE.
On the revenue front, today, we have over 30mm in annualized revenues. Making our burn around 34mm. We also have over 50mm in cash. This ensures that with moderate revenue growth (which, to be clear, is not our goal) we should have the capital we need, well into 2024 and beyond; or to make opportunistic investments as opportunities arrive in short order (Q4 onwards).
This effort over the past 4 weeks required getting into the weeds as well as several discussions with functional leaders across marketing, sales, product, legal, financial, and people. There are too many to list here but you know who you are – thank you.”