On March 8, 2024, Inscribe laid off 200 employees, representing 0.4% of its workforce. This move has raised concerns within the company and the industry.
Inscribe, headquartered in the SF Bay Area, operates in the Finance sector. The layoffs come amid broader industry challenges and economic uncertainties affecting many companies in the region.
Inscribe decided to lay off employees due to missed revenue goals and the need to pivot to a new product strategy. The layoffs were also influenced by broader economic factors affecting the fintech industry.
"2023 was a year of change for our customers and Inscribe," explained Inscribe CEO and co-founder, Ronan Burke. "Many of our customers in the fintech industry had to contend with higher interest rates and an unpredictable future for consumers and businesses. Additionally, the advances in AI in 2023 present one of the largest opportunities for the financial services ecosystem — enabling improved customer experiences, more efficient processes and fairer decisions," he continued.
"In Q4 of last year, we set out on a new product strategy to align with these two industry shifts, and we have a large product launch planned for later this year related to this, which we are very excited about. As part of the change in strategy, in January of this year, we made the difficult decision to reduce the size of the team by just under 40%, mostly in go-to-market and operational roles," Burke said.
Burke's statement highlights the dual pressures of economic challenges and technological advancements that necessitated the layoffs. The company's pivot to a new product strategy aims to leverage AI advancements, which they believe will drive future growth and innovation. This strategic shift, however, required a leaner team to focus on the upcoming product launch and align with the new direction.
The layoffs at Inscribe have significantly impacted the company's workforce, particularly in go-to-market and operational roles. This reduction in employees may strain the company's operations, potentially slowing down processes and affecting overall efficiency.
In the broader fintech sector, several companies have also announced layoffs recently, including Stripe and Plaid. These industry-wide reductions reflect ongoing economic challenges and the need for strategic pivots in response to market conditions.
The layoffs at Inscribe signify a critical juncture for the company, emphasizing the need for a streamlined approach to achieve its new strategic goals. Moving forward, Inscribe plans to focus on several key areas to ensure future success.
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