11% of Staff at NerdWallet Laid Off
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11% of Staff at NerdWallet Laid Off

11 of Staff at NerdWallet Laid Off

In a third round of cutbacks this year, personal finance site NerdWallet has laid off 53 representatives—around 11% of its workforce—after neglecting to meet income targets. This is according to an email CEO Tim Chen wrote to staff Thursday morning. In the email, acquired by SFGATE, Chen said that a few zones of the organization aren’t running as productively as they ought to be, and that “rough patches” have affected NerdWallet’s income in 2017.

“Sadly, this means we will be saying goodbye to 53 talented Nerds, who have all contributed meaningfully to building NerdWallet,” Chen wrote. “Every year since NerdWallet was founded in 2009, we’ve exceeded our aggressive revenue targets. We got used to exceeding our goals, and it colored our judgment on how prudent we needed to be with our expenses in 2017.”

This is the largest of the cuts that have happened this year at NerdWallet, where 40 individuals were laid off in April, including then-Vice President of Growth Henry Hsu. Six more were let go in mid-July, TechCrunch detailed. It was a morning loaded with harsh news for advanced media outlets at large, as MarketWatch Tech Editor Jeremy Owens called attention noted on Twitter. Buzzfeed and Vice also missed their income targets, and Mashable was allegedly sold for $50 million after being valued at $250 million in 2016.

“Two factors drove this decision—we’re not hitting our profitability goals, and there are areas within our organization that aren’t running as efficiently as they should be,” Chen said. “This is the right decision for NerdWallet, but it’s also extremely painful.”

Asked whether the latest layoffs signal that the company’s business model isn’t working, NerdWallet told the San Francisco Business Times: “No, absolutely not. This is about efficiency and effectiveness, no change in strategy.”

NerdWallet gathers income when somebody taps on or gets endorsed for a money related product from its site, for example, a Visa card. Finance is a very aggressive business, with Credit Karma and its free FICO rating among the more challenging competition.

Kashish Ambekar
Kashish Ambekar
Kashish moved to the United Arab Emirates from London after he graduated from UEL with a Masters of Business Administration specializing in Finance. Money smelled good, although tipping in rubies was a fortune in Dubai, which he couldn’t afford, let alone implement. India happened naturally by birth and the ever developing market proved no bounds in almost every Industry. The art of writing came naturally to him, short stories to professional articles in lieu of being therapeutic once, to a full time content writer. Currently he freelances as a content writer and is extremely devoted as his thoughts have found a way to be penned for technology in support to TechFunnel.com.

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