Financial technology stable Pagaya Technologies Ltd said on Wednesday it was placing off nearly 20% of its employees crossways its offices in the United States and Israel.
Fintech startups have been about of the biggest casualties of the challenging economic environment subsequently last year after the Federal Reserve began rising rates to combat inflation.
Papaya said the exaggerated employees were informed by Tuesday. The business will incur a one-time charge of $4 million owing to severance payouts, most of which will be accounted for in the first sector, it added.
Papaya supposed the job cuts will bring about $30 million in savings annually, beginning in 2023, and help it achieve its growth purposes in the near- to medium-term.
The company recorded on NASDAQ last year through a merger with special drive acquisition company EJF Acquisition Corp in a deal that appreciated it at $8.5 billion.
Since then, its shares have lost everywhere 84% of their value as of the last close. They were down nearly 3.5% at 92 cents in premarket exchange.
A special purpose attainment company is a company that is listed on an exchange solely with the determination of raising money to acquire another company besides taking it public.