US-based digital banking platform BM Technologies is planning to reduce its workforce by 25% amid choppy markets.

The job cuts are part of the firm’s Profit Enhancement Plan aimed at reducing operating costs, improving operating cash flow, and operating margins and redirecting the company’s resources towards ‘best’ opportunities. 

This staff downsizing comes on top of other cost-cutting measures and service provider rationalisation, the firm said. 

BM Technologies anticipates the plan to result in $18m in annualised cost reductions and save around $15m in annualised costs this year.

The company expects to incur between $1.5m and $3m in connection with its plan, with the majority of it being incurred in the first quarter of 2023.

BM Technologies chair, CEO and founder Luvleen Sidhu said: “The fintech Industry is still in its early stages and continues to grow, but market dynamics are substantially different than they were a year ago. Companies across the spectrum must adjust to new market realities including the current high-interest rate and inflationary environment. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“BM Technologies’s imperative is to remain an agile company that can continue to innovate, serve its customers better than its competitors, and produce new products and services while facing uncertain headwinds. In this environment, our objective is to position BM Technologies for the next level of growth for our customers and shareholders as we accelerate expansion opportunities while strengthening our financial position.”

Earlier this month, LendingClub’s parent said it is reducing its workforce by 14% to align the business with reduced income.