Affirm Holdings Inc. website home screen on a notebook computer in an arranged photograph taken in Little Falls, Latest Jersey.
Gabby Jones | Bloomberg | Getty Images
Affirm announced its cutting 19% of its workforce because it reported second quarter earnings that fell below analyst estimates on each the highest and bottom lines.
Shares were down greater than 17% after hours.
In his letter to shareholders Wednesday, Founder and CEO Max Levchin called the choice “the only most difficult one” of all of the cuts the corporate selected to make, and said the layoffs can be effective that day.
The corporate reported a loss per share of $1.10 for its fiscal second quarter of 2023, while analysts were anticipating a lack of 98 cents per share, in keeping with Refinitiv. It also missed on revenue expectations, reporting $400 million in revenue for the quarter in comparison with analyst estimates of $416 million, in keeping with Refinitiv.
Levchin told shareholders Affirm expects to maintain headcount “essentially flat for the foreseeable future.”
“In FQ2’23, we redirected the substantial majority of our R&D efforts towards margin-improving projects, repeat consumer engagement, and Debit+ and plan to proceed executing this focused roadmap for several quarters,” Levchin said.
That is breaking news. Please check back for updates.
