London Daily

Focus on the big picture.
Monday, Feb 02, 2026

The financial startups bubble is bursting. Here are the fintechs that have announced cuts so far, from Robinhood to Better.

The financial startups bubble is bursting. Here are the fintechs that have announced cuts so far, from Robinhood to Better.

Robinhood cut 300 jobs in April, citing a slowdown in retail trading. Other financial tech companies to slash headcount include Better and Blend.

America's tech industry enjoyed an unprecedented boom during the pandemic when Americans turned to their phones like never before to do everything from shopping to online banking.

Financial technology startups that help consumers bank, trade or shop online were among the winners. But business is slowing as people increasingly return to their pre-pandemic lives.

Compounding the slowdown for fintechs are rising interest rates, which hurt demand for services like mortgage lending and stock trading.

Signs of distress are showing up in the form of layoffs, which have been popping up all over Silicon Valley businesses in the last few months, from no-fee trading app Robinhood to mortgage software provider Blend.

Here are some of the most notable examples so far:


Robinhood: More than 300 people


Robinhood cofounders Vlad Tenev and Baiju Bhatt were "visibly shaken" in announcing jobs cuts in April.


During the pandemic, so-called "meme stocks" from GameStop and AMC exploded as stuck-at-home investors armed with no-fee trading platforms looked for ways to spend their pandemic stimulus checks.

As new users piled in, Robinhood hired rapidly. Between 2020 and 2021, the trading app's staff grew dramatically: from 700 people to around 3,800, according to CEO Vlad Tenev. But that growth ended up proving too much, too fast. In April, Robinhood was forced to slash headcount by 9% — more than 300 people altogether.

"This rapid headcount growth has led to some duplicate roles and job functions, and more layers and complexity than are optimal," Tenev said in April. "After carefully considering all these factors, we determined that making these reductions to Robinhood's staff is the right decision to improve efficiency, increase our velocity, and ensure that we are responsive to the changing needs of our customers."

Laid off staff have told Insider that the founders were "visibly shaken" in announcing the April layoffs.


Better: About 4,000 people


Better.com CEO Vishal Garg laid off 900 employees on a video call in December.


Starting in late 2021 and continuing through the first several months of 2022, mortgage startup Better.com laid off approximately 4,000 people.

The first wave started right before the holiday season in 2021, when CEO Vishal Garg laid off "hundreds" of people in a video call.

Garg told employees via Zoom that the company, "lost $100 million last quarter," which he said, "was my mistake." He then said the layoffs shouldn't have happened right before the holiday, but, "three months ago."

Former employees told Insider they were shocked and angry by the first round of cuts, in part because execs had painted a rosy picture.

Better followed up with another 3,000 layoffs in March, and is now accepting voluntary layoffs in some departments.


Blend: About 200 employees


Nima Ghamsari, founder and CEO of Blend


Although Blend doesn't write home loans, its technology is used by major US lenders from Wells Fargo to US Bank, so its fortunes are tied closely to theirs. Blend's layoffs this spring affected roughly 200 people, many concentrated within Blend's title insurance business.

Ahead of its IPO last July, Blend bought Title365, which has been particularly exposed to swings in refinance volumes, for more than $400 million.

The size and pace of rate increases "is unprecedented, certainly in modern history," Tim Mayopoulos, the president of Blend, told Insider.

Prior to joining Blend, Mayopoulos spent nearly 10 years at Fannie Mae, where he ultimately served as president and CEO of the mortgage giant.

"These are big movements in a very, very big market," Mayopoulos added. "It shouldn't be surprising to any of us that everybody who's touching this market is having to think about how to bring their cost structure in line with market realities."


Mainstreet: About 50 employees


MainStreet's homepage as of May 4, 2022.


In January 2022, B2B financial-services startup MainStreet flew the entire company out for a week-long working vacation in Maui.

About 150 employees stayed at the luxurious Grand Wailea Hotel, attended meetings, and enjoyed free buffets at the beachfront Hawaiian resort. Workers who questioned the expense were told the startup was aiming to land a significant Series B funding round that would ensure significant runway.

But the funding that ultimately materialized was smaller than originally planned, Insider has learned, and in early May the company cut around 50 employees — roughly a third of its workforce.


PayPal: 4-person emerging technology R&D team


A PayPal sign is seen at an office building in San Jose, California May 28, 2014.


PayPal has laid off its security R&D team focusing on emerging technologies, Insider has learned. And a source with direct knowledge of the cuts believes it won't be the only unit to be affected as the payments giant undergoes an internal restructuring to cut spend.

"There's a lot of restructuring, a lot of refocusing for the company. As you know, the last quarters haven't been really great from a financial perspective. I think there's a lot of tightening going on in the company," said the source, who asked to remain anonymous for fear of retribution. The source added that employees in other advanced security topics, such as threat intelligence, were also let go.

Market conditions, like supply chain issues and rising inflation, have put downward pressure on growth, Schulman said. Meanwhile, eBay's migration to managing the end-to-end payments process "put $1.4 billion of pressure on our top line," Schulman said during the earnings call. Competition from fintechs like Stripe and Shopify also continues to saturate the payments and e-commerce space.

Comments

Oh ya 4 year ago
Oh dont feel left out if you still have a job, the whole economy is starting to implode so you still have a chance at being fired. You can thank the government and the joo run Federal Reserve for this from 1971 when Nixon closed the gold window

Newsletter

Related Articles

0:00
0:00
Close
Starmer Arrives in Shanghai to Promote British Trade and Investment
Harry Styles, Anthony Joshua and Premier League Stars Among UK’s Top Taxpayers
New Epstein Files Include Images of Former Prince Andrew Kneeling Over Unidentified Woman
Starmer Urges Former Prince Andrew to Testify Before US Congress About Epstein Ties
Starmer Extends Invitation to Japan’s Prime Minister After Strategic Tokyo Talks
Skupski and Harrison Clinch Australian Open Men’s Doubles Title in Melbourne
DOJ Unveils Millions of Epstein Files, Fueling Global Scrutiny of Elite Networks
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
China Lifts Sanctions on British MPs and Peers After Starmer Xi Talks in Beijing
Trump Nominates Kevin Warsh as Fed Chair to Reorient U.S. Monetary Policy Toward Pro-Growth Interest Rates
AstraZeneca Announces £11bn China Investment After Scaling Back UK Expansion Plans
Starmer and Xi Forge Warming UK-China Ties in Beijing Amid Strategic Reset
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
U.S. Signals Potential Decertification of Canadian Aircraft as Bilateral Tensions Escalate
Former South Korean First Lady Kim Keon Hee Sentenced to 20 Months for Bribery
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
China Executes 11 Members of the Ming Clan in Cross-Border Scam Case Linked to Myanmar’s Lawkai
Trump Administration Officials Held Talks With Group Advocating Alberta’s Independence
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
Starmer Says China Visit Will Deliver Economic Benefits as He Prepares to Meet Xi Jinping
UK Prime Minister Starmer Arrives in China to Bolster Trade and Warn Firms of Strategic Opportunities
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Amazon to Cut 16,000 Corporate Jobs After Earlier 14,000 Reduction, Citing Streamlining and AI Investment
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Wall Street Bets on Strong US Growth and Currency Moves as Dollar Slips After Trump Comments
UK Prime Minister Traveled to China Using Temporary Phones and Laptops to Limit Espionage Risks
Google’s $68 Million Voice Assistant Settlement Exposes Incentives That Reward Over-Collection
Kim Kardashian Admits Faking Paparazzi Visit to Britney Spears for Fame in Early 2000s
UPS to Cut 30,000 More Jobs by 2026 Amid Shift to High-Margin Deliveries
France Plans to Replace Teams and Zoom Across Government With Homegrown Visio by 2027
Trump Removes Minneapolis Deportation Operation Commander After Fatal Shooting of Protester
Iran’s Elite Wealth Abroad and Sanctions Leakage: How Offshore Luxury Sustains Regime Resilience
U.S. Central Command Announces Regional Air Exercise as Iran Unveils Drone Carrier Footage
Four Arrested in Andhra Pradesh Over Alleged HIV-Contaminated Injection Attack on Doctor
Hot Drinks, Hidden Particles: How Disposable Cups Quietly Increase Microplastic Exposure
UK Banks Pledge £11 Billion Lending Package to Help Firms Expand Overseas
Suella Braverman Defects to Reform UK, Accusing Conservatives of Betrayal on Core Policies
Melania Trump Documentary Sees Limited Box Office Traction in UK Cinemas
Meta and EssilorLuxottica Ray-Ban Smart Glasses and the Non-Consensual Public Recording Economy
WhatsApp Develops New Meta AI Features to Enhance User Control
Germany Considers Gold Reserves Amidst Rising Tensions with the U.S.
Michael Schumacher Shows Significant Improvement in Health Status
Greenland’s NATO Stress Test: Coercion, Credibility, and the New Arctic Bargaining Game
Diego Garcia and the Chagos Dispute: When Decolonization Collides With Alliance Power
Trump Claims “Total” U.S. Access to Greenland as NATO Weighs Arctic Basing Rights and Deterrence
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
×