Pagaya Technologies Ltd., a provider of financial technology, announced that it was laying off close to 20% of its workforce across its locations in Israel and the United States.
Since last year, when the Federal Reserve started hiking rates to fight inflation, FinTech firms have been among the industries suffering the most from the hard economic climate.
Pagaya said that, the impacted employees had been notified. According to the corporation, severance payments will result in a one-time charge of $4 million, the majority of which will be recorded in the first quarter.
According to the company’s website, it was founded in 2016 and currently employs over 600 people.
Pagaya said that starting in 2023, the employment reduction will result in yearly savings of nearly $30 million and assist the company reach its short- to medium-term development goals.
The business was valued at $8.5 billion when it merged with the special purpose acquisition company EJF Acquisition Corp and went public on the NASDAQ last year.
As of the most recent closing, its shares have since lost around 84% of their value. In premarket trade, they were down roughly 3.5% at 92 cents.
A business that is listed on an exchange exclusively for the purpose of obtaining capital to buy another firm and float it is referred to as a special purpose acquisition company.
