Synapse, a fintech startup led by Indian-origin CEO Sankaet Pathak and backed by global venture capital firm Andreessen Horowitz (a16z), has undertaken a second round of layoffs this year, resulting in the termination of 86 employees, approximately 40 per cent of its workforce.
This recent round of layoffs follows a previous reduction in June when CEO Pathak announced the elimination of 18 per cent of the company's staff. At that time, Pathak stated that the decision was made to restructure the team, particularly in areas that were overstaffed for anticipated growth or had become redundant.
Synapse expressed regret over the departure of talented and dedicated team members and emphasized that it maintains a strong team capable of managing operations and supporting customers moving forward.
The fintech startup, founded in 2014 by Bryan Keltner and Sankaet Pathak, aims to provide an alternative to traditional banking systems while prioritizing operational simplicity, efficiency, and ease of integration for various banking interactions.
In 2019, Synapse secured $33 million in its Series B funding round, led by Andreessen Horowitz. CEO Pathak noted in June that Synapse had achieved profitability and positive cash flow in 2022. However, the current economic conditions have started to impact the company's clients and platforms, affecting expected growth.
Despite these challenges, Pathak expressed confidence in the underlying fundamentals and potential of Synapse's business. The company is taking steps to position itself for continued success and adapt to the changing needs of clients and the market.
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