Chicago fintech startup Amount, which raised funding last year at a $1 billion valuation, has trimmed almost a fifth of its staff.
Amount has laid off 18% of its workforce, a company spokesperson confirmed to Chicago Inno. TechCrunch first reported the news.
The company didn't respond to questions on the exact number of employees impacted by the layoffs, but Amount had a staff of 400 when it raised $100 million last May, which would mean more than 70 people were let go.
"Due to the current macro-economic environment, we have decided to take some proactive adjustments to ensure Amount’s ability to thrive for years to come," CEO Adam Hughes said in a statement provided to Chicago Inno. "We believe these actions are the prudent thing to do for the long-term health of the company and remain extremely excited about the future."
The layoffs come as Amount raised $36 million in new funding in May, according Crain's. The funding reportedly kept Amount a unicorn, valuing the business at $1.05 billion. To date, the startup has raised more than $270 million.
Amount was founded in 2018 originally as the tech arm of Avant, a Chicago digital consumer lending company. Amount has built tech-powered lending products for banks, who wanted to enhance their digital capabilities and compete with fintech companies. The startup officially spun off of Avant in 2020.
Amount's downsizing comes as the tech industry braces for a slowdown following years of growth. Other VC-backed startups to undergo layoffs recently include Cameo, which let go 25% of its staff, and Hologram, which cut more than one-third.
