Synapse, a San Francisco-based financial technology startup backed by a global capital firm, plans to lay off 40% of its workforce. Sankaet Pathak, CEO of Synapse, is an Indian-origin entrepreneur. The decision will have an impact on 86 positions at the tech startup.
The decision is part of the company’s reorganization strategy, specifically for overstaffed departments and duplicated roles, according to the company. It hopes to advance along its growth path as a result of this. According to media reports, the company confirmed that one of its major clients, Mercury, would not renew its contract and would instead work directly with its banking partner, Evolve Bank and Trust.
In response to the layoffs, the company expressed deep regret for having to say goodbye to some of its “exceptionally skilled and committed members.” Nonetheless, the company expressed confidence in its current team’s ability to manage its operations and continue to support its customers.
This is the company’s second round of layoffs. The previous one saw an 18% reduction in headcount in June 2020, affecting 63 roles.
Synapse, founded in 2014 by Bryan Keltner and Sankaet Pathak, entered the market with the intention of providing a viable alternative to traditional banking systems. The startup’s main goal was to provide operational simplicity, efficiency, and seamless integration for all types of banking transactions.
By acting as an intermediary between its clients and their banking associates, it assists other startups in providing deposit, payment, and credit products. Andreessen Horowitz led a $33 million Series B funding round for the company in 2019.