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Simpl announces layoffs as part of strategy to achieve profitability by 2025

News update

Simpl, a leading buy-now-pay-later (BNPL) fintech startup, has announced layoffs of more than 100 employees across various departments in a strategic move aimed at achieving profitability by mid-2025. The announcement was made by Nitya Sharma, CEO and co-founder, during a session town hall on Wednesday morning.

The company, which previously employed around 650 people including key operating staff, interns and call agents, said the layoffs affected a wide range of positions, including some high-level positions. In an effort to support affected employees, Simpl has promised to provide severance pay that includes two months’ pay, an additional 15 days’ pay for each year of service, expanded health insurance and outplacement services.

A source revealed that some employees were logged out of their Slack accounts before the town hall meeting even started. The action indicates the sudden nature of the layoffs, which came as a surprise to many, especially since some employees expected a performance review instead.

The layoffs are part of Simpl’s larger effort to streamline operations and reduce costs, explained Ashish Kulshrestha, Simpl’s head of corporate communications. “As an organization committed to creating shared value for our merchants and millions of customers across the country, we have taken a number of actions to improve operational efficiency, reduce fixed and overhead costs, while making the difficult decision to let go of some of our talented employees. These efforts allow us to accelerate our path to profitability and build a fiscally prudent organization. We have developed a comprehensive growth plan while focusing on profitability to advance our mission to enable e-commerce and direct-to-consumer merchants to provide greater convenience to their customers,” said Kulshrestha.

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It is not the first time that Simpl has had to make such difficult decisions; in April of last year, the company cut more than 150 employees after recognizing an overestimation of e-commerce demand following the pandemic.

The layoffs come on the heels of a $40 million Series B fundraising round in 2021 led by Valar Ventures & IA Ventures. This funding round followed four years after the company’s Series A round in 2017, which saw significant growth and investment interest in the BNPL sector.

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