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Greenlight, a fintech startup providing debit playing cards to youngsters, has laid off 104 employees — or over 21% of its whole headcount of 485 employees — to “better align with ongoing operating expenses” amid the financial slowdown.

TechCrunch realized concerning the layoff that was introduced to its employees earlier this week. The startup later confirmed the event over an electronic mail.

“The macroeconomic environment has impacted virtually all businesses, including Greenlight. We recently made the difficult decision to better align our ongoing operating expenses with the current environment,” a Greenlight spokesperson stated in a press release emailed to TechCrunch.

The spokesperson stated the impacted employees would obtain severance, prolonged medical protection, and profession transition assist. The startup introduced the choice on Tuesday and now has a workforce of 381 employees.

“The company remains committed to its mission to help parents raise financially-smart kids. Moving into 2023, Greenlight will be focused on continuing to serve its growing customer base and finding new, impactful ways to improve financial literacy for families,” the spokesperson stated.

Greenlight affords youngsters a debit card, banking app and monetary schooling to make them financially sensible and impartial. Community Federal Savings Bank points the Greenlight debit card.

In December, the Atlanta-headquartered startup introduced a web-based monetary literacy library aligned with the Okay-12 nationwide requirements that shall be free to colleges, academics and college students. It additionally in October added household security options to its subscription plan known as Greenlight Infinity which is priced at $14.98 per 30 days for the entire household.

According to the information accessible on Crunchbase, Greenlight has raised about $556.5 million in whole since its inception in 2014. The funding included the $260 million Series D spherical that was introduced in 2021 at a valuation of $2.3 billion.

Greenlight has emerged as one of many newest startups laying off its employees throughout this difficult time. In the previous few days, startups equivalent to Career Karma, Carta and Coinbase let their tens and tons of of employees go to cut back expenses. Big tech firms together with Amazon and Salesforce have additionally laid off 1000’s of employees this month because the economic system continues to wrestle. Additionally, the rising financial slowdown has impacted distinguished fintech startups together with Stripe, which laid off 14% of its workforce in November. The startup additionally reduce its inner valuation but once more to $63 billion, TechCrunch reported earlier on Thursday.