Online financial technology company Kabbage is furloughing several its employees in the US and closing down its Bangalore office in India due to the economic impact of Covid-19 pandemic.
A team of 500 staff are working for Kabbage in the US and an unspecified number of employees are being furloughed.
Kabbage is permanently closing the Bangalore office, while the company’s executive staff are taking a considerable pay cut.
In a memo sent to staff and seen by TechCrunch, Kabbage CEO Rob Frohwein said the economic fallout of this virus has rattled the small business community to which the company is directly linked.
Frohwein said: “While the duration of the furlough remains uncertain, please bear in mind that the full intention of furloughing is temporary. We simply have no clear idea of how long quarantining or its reverberations in the economy will last.”
Earlier this month, the fintech firm called upon policymakers to enable FinTech providers to help save small businesses.
The company said many are facing stressful economic choices due the Covid-19 threat, but state policymakers can help slow the effects in local communities.
Kabbage has also launched online hub to help increase sales for US small businesses impacted by coronavirus pandemic.
The company is actively working with organisations in the payments ecosystem to eliminate or significantly decrease any associated transaction fees.