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Breaking News: Fintech Startup Aspiration Set to Layoffs More Than Half of Staff

In a company-wide restructuring, Aspiration, a fintech startup company based in California, plans to let go of 180 employees. The layoffs will affect both remote employees and those based out of Aspiration’s Marina Del Rey headquarters. Aspiration’s last layoff took place in December, when the company cut about 100 employees.

Olivia Albrecht, CEO of the Company, has filed a Worker Adjustment and Retraining Notification letter which states that in order to align with economic conditions and obtain capital, restructuring is necessary. With deep sorrow, the layoffs will begin on May 26th and there are specific job positions listed. The WARN Act, put in place at both federal and state level, usually calls for a two-month notification of major plant shutdowns or dismissals.

Customers can donate to tree-planting non-profit organizations by rounding up their purchases up to the nearest dollar with Aspiration, a digital bank launched in 2013. According to his LinkedIn profile, Deepak Kumar will be laid off, who oversees Aspiration’s consumer banking operations, including risk management and customer service call centers.

At the height of the pandemic, when digital services soared in popularity, the neobank business model proved to be more difficult than it appeared. The cost of acquiring new customers was too high relative to the revenue they could generate over time for many digital banks.

The carbon offsets market is based on the idea that businesses can mitigate their carbon footprint by funding projects that remove carbon from the atmosphere. Aspiration began selling carbon offsets to businesses in late 2021.

St. Louis Business Journal first reported the layoffs, which affected departments including product management, software engineering, customer engagement and more. Another executive impacted by the layoff is Aspiration’s chief of staff.

Interprivate III Financial Partners Inc., a special purpose acquisition company (SPAC), will help Aspiration go public in 2021. There have been three delays in the IPO deal deadline, the first to December 31, 2022, the second to March 31, 2023, and the third to May 1, 2023. According to Julian Klymochko, CEO of Accelerate, which invests in SPACs, it is the second-longest outstanding SPAC deal on the market.

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