Fintech Bolt has laid off more than 100 employees in the fields of engineering, sales and marketing – TechCrunch
Sources say the one-click payment startup Bolt has laid off at least 100 employees and is counting on its go-to-market, sales and staffing roles. CEO Magu Korovila emphasized the workforce reduction in a blog post but did not mention the number of people affected or the roles targeted.
“It is no secret that market conditions across our industry and technology sector are changing, and in the face of macro challenges, we have taken measures to adapt our business,” Corvilla wrote in the blog post. “In an effort to ensure Bolt has its own destiny, the leadership team and I have made the decision to secure our financial position, extend our runway, and reach profitability with the money we have already raised.”
The restructuring comes after weeks of checking Bolt to slow revenue and customer growth. A major client has also sued the fintech company, which leads to more questions about Bolt’s stability for the time being. In response to the allegations and reports, Korovilla then said that Bolt saw a 131% year-over-year increase in shopper accounts and a 192% year-over-year increase in total active merchant accounts.
Today marks a completely different tone in Bolt’s mood. “This is one of the most difficult messages I’ve had to send” and that “since taking this position just a few months ago, my highest priority has been to do what is best for Bolt’s business, its customers, and its employees… It’s the commitment I’ve made to the Board of Directors, investors, and most importantly,” Korovilla said. To all of you as we continue our journey toward decentralizing and democratizing trade.”
Corovilla – a former Amazon CEO – took over as CEO in January after founder Ryan Breslow stepped down.
Since its inception in 2014, Bolt has raised more than $1 billion in funding and was valued at $11 billion at the time it raised $355 million in Series E in January. Investors include funds and accounts managed by BlackRock, Schonfeld, Invus Opportunities, CreditEase, HIG Growth, Activant Capital and Moore Strategic Ventures.
Controversy is no stranger to Bolt. Its 27-year-old founder, Breslow, started the company after withdrawing from Stanford. He resigned as CEO in January and is generally known for his very outspoken ideas, like this Tweet thread And recent excavations in the media. In an interview with TechCrunch’s Connie Louisos that same month, he said the company signed nearly 10 major deals in the second half of last year, each bigger “than any deals Bolt has signed in the company’s history previously.”
In early April, Bolt announced plans to acquire crypto startup Wyre for $1.5 billion, a staggering sum for any company, but especially a company in a place as mired in controversy as this one.
The one-click exit space was tense. Last month, Fast – Bolt’s closest competitor – shut down due to a massive cash burn. Employees were affected at the time, and now there is a new influx of new fintech talent into the market who have recently lost their jobs.