SoFi Cuts Jobs – Fintech Struggles with Staff Reduction

January 10, 2024
1 min read

TLDR: SoFi, a leading fintech platform, is reportedly cutting staff, with around 7% of its workforce or 300 employees expected to be let go. Despite a strong performance in the stock market in 2023, SoFi is now facing challenges that have led to these layoffs. Analysts predict more downside for the company’s shares and expect further pain ahead. SoFi’s Q3 2023 report showed record adjusted net revenue of $531 million but also a net loss of $19.5 million. The company aims to achieve positive GAAP net income in Q4 2023.

SoFi, a top Fintech platform that holds a bank charter, is letting people go, according to multiple reports. SoFi was a big winner in the stock market in 2023, gaining 116%, but apparently, things may not be as great as they seem as the company is slashing its headcount.

The first reports appear to be coming from an X account that is reporting multiple SoFi employees posting on LinkedIn they are now looking for a new job. The number of employees being whacked is estimated at around 7% of the total headcount or around 300 employees.

Analyst Ram Ahluwalia commented on SoFi letting people go, predicting more pain ahead for the company and expecting more downside in the shares of the company, adding he is shoring the stock. He expects a $5 price target, a big haircut from the over $8 shares SoFi is trading at now.

SoFi has scheduled its fourth quarter and full year of 2023 earnings call to take place on Monday, January 29, 2024, at 8AM so we should know more later this month.

For its Q3 2023 report, SoFi reported “record adjusted net revenue” of $531 million and accelerating growth, adding 717,000 new accounts in the quarter. At the same time, the company reported a a net loss of $19.5 million and an EPS loss of $0.03 (excluding non-cash goodwill impairment). SoFi said they would achieve positive GAAP net income in the fourth quarter of 2023.

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