NerdWallet recently announced it has laid off 6 additional employees specifically from its marketing team. In addition to the 40 employees that were cut off in April, including its VP of Growth, Henry Hsu, it is estimated that about 10% of employees have been cut from the finance company.
According to CEO Tim Chen, the reasoning behind the layoffs is an effort to reorganize the company. Although the company has laid off a noticeable percentage of its staff, Chen reiterates that NerdWallet is still “financially strong” and after the recent layoffs, “there are no more planned layoffs [of its remaining 444 staff members] in the foreseeable future.”
NerdWallet raised upwards of $69 million from its Institutional Venture Partners, and it plans to use the funds to shape the future of the company.
Chen stated the following about the layoffs and NerdWallet’s future plans:
“This move helps to right-size Marketing to a team of 36 Nerds and it ensures our resources are allocated optimally across the company. Our strategic resource allocation also includes the addition of 41 new hires since April, with focused recruiting in the areas of product, engineering, and design… Coincidentally, I was talking to different business leaders in the Valley for advice on how to prepare for hypergrowth, and it was apparent that there were major factors that were getting in the way of achieving our ambitious vision. As a result, I led a reorganization of NerdWallet where several employees were let go. I was faced with a hard decision of making major changes to enable the company to reach the next level.”
Although NerdWallet surprisingly reduced the number of its staff, it seems as if it was a strategic move for the good of the company. CEO Tim Chen will be evaluated on the change in later months when the effects of the layoffs begin to show.
Mohammad Sultani for TechFunnel.com