Riskified laying off 6% of team as growth stutters
Riskified laying off 6% of team as growth stutters
The fintech company is parting ways with over 40 employees, with CEO Eido Gal explaining that despite the company’s best efforts to grow its revenue while reducing spending, it requires a faster process to reach its EBITDA targets
Israeli fintech company Riskified is laying off over 40 of its 750 employees, accounting for about 6% of its total workforce.
Riskified went public on NYSE in July 2021 at a valuation of $3.3 billion. Its market cap has since fallen to around $820 million. Founded in 2013 by CEO Eido Gal and CTO Assaf Feldman, Riskified has developed an AI-powered fraud and risk intelligence platform that analyzes the individual behind each interaction to provide real-time decisions and identity-based insights.
Gal sent a letter to employees explaining that the company’s rate of growth has been lower than hoped and “that is not the place we want to be in the longer term.” He noted that despite the company’s best efforts to grow its revenue while reducing spending it, requires a faster process to reach its EBITDA targets, meaning that “the next logical step is reducing the number of employees.”
Riskified reported a loss of $20.9 million in its third quarter of 2023. The provider of fraud-prevention services posted revenue of $71.9 million in the period and said that it expects full-year revenue in the range of $297 million to $300 million. It will announce its fourth quarter and full year results on March 5.
