Greenlight, child-focused fintech startup, lays off 104 employees to optimize costs businessupdates.org

by Ana Lopez

Green lighta fintech startup that offers debit cards to children has laid off 104 employees – or more than 21% of its total workforce of 485 employees – to “better align with ongoing operating costs” amid the economic slowdown.

businessupdates.org learned about the layoffs announced to its employees earlier this week. The startup later confirmed the development via email.

“The macroeconomic environment has impacted virtually all businesses, including Greenlight. We recently made the difficult decision to better align our ongoing operating expenses with the current environment,” a Greenlight spokesperson said in an emailed statement to businessupdates.org.

The spokesman said affected employees would receive severance pay, comprehensive medical coverage and career transition support. The startup announced the decision Tuesday and now has a workforce of 381 employees.

“The company remains committed to its mission to help parents raise financially smart children. Beginning in 2023, Greenlight will focus on continuing to serve its growing customer base and finding new, impactful ways to improve families’ financial literacy,” said the spokesperson.

Greenlight offers children a debit card, banking app and financial education to make them financially smart and independent. Community Federal Savings Bank issues the Greenlight debit card.

In December, the startup headquartered in Atlanta launched introduced a web-based financial literacy library aligned with K-12 national standards that will be free to schools, teachers, and students. It also added family safety features to its plan called Greenlight Infinity in October, which costs $14.98 per month for the whole family.

According to the data available on Crunchbase, Greenlight has raised a total of approximately $556.5 million since its inception in 2014. The funding included the $260 million Series D round announced in 2021 with a valuation of $2.3 billion.

Greenlight has emerged as one of the latest startups to lay off its staff during this challenging time. In recent days, startups such as Career Karma, Carta and Coinbase let their dozens and hundreds of employees go to cut costs. Major tech companies, including Amazon and Salesforce, also laid off thousands of employees this month as the economy continues to struggle. In addition, the growing economic slowdown has impacted prominent fintech startups, including Stripe, which laid off 14% of its workforce in November. The startup also cut its internal valuation again to $63 billion, businessupdates.org reported earlier on Thursday.

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