Climate-focused neobank Aspiration will lay off more than 180 employees in May as part of a restructuring initiative, marking the company’s latest round of layoffs since it cut about 100 jobs in December.
The Marina Del Rey, California-based fintech, which offers sustainability-centered consumer and commercial solutions, is laying off folks across several departments, including software development and product management, as well as its chief administrative officer and chief of staff. The layoffs are slated to happen between May 26 and June 1, according to a Worker Adjustment and Retraining Notification letter filed by the company on March 24.
“The layoff is necessitated by the need to streamline and restructure the business in light of current economic conditions and the limited capital available to the company,” wrote CEO Olivia Albrecht, who took the reins of the company in October, in the WARN letter. “The company is saddened to have to take this step.”
The layoffs were first reported by the St. Louis Business Journal.
Aspiration, founded in 2013, offers consumer services like credit cards that fund the planting of trees and investing accounts that focus on environmentally-conscious companies. Forbes reported that the company shifted its focus to selling carbon credits to corporations when it appointed Albrecht as CEO last fall.
The neobank has also been stuck trying to hit the public markets through a merger with a special purpose acquisition company. The deal was first announced in August 2021, and valued Aspiration at $2.3 billion. The deadline to close has been extended several times, now until May 1, 2023.
Aspiration is one of many fintechs to announce layoffs over the past several months, as a tightening economic environment tamps down on the technology sector. Other fintechs that have made major cuts include SoFi, LendingClub, Opportun and Affirm.