The company with a mission to end passwords for good recently announced major layoffs.
San Francisco-based Stytch has let go of about 25% of its staff, or 19 people, according to an internal email reviewed by the Business Times.
Laid off employees will receive 10 weeks of pay with an additional week for every year served at the company, along with reimbursement for three months of COBRA health care and immigration support.
Stytch offers customers an authentication API that acts as an alternative to the typical password. The company last raised funds in 2021, a Series B of $90 million, which brought its total raised to $126.3 million.
The company was founded by former Plaid employees Reed McGinley-Stempel, CEO, and Julianna Lamb, CTO. Lamb was one of the Business Times 40 Under 40 honorees last year, and the company ranked No. 15 on our Best Places to Work list of 2022.
"What is clear to us from the latest macroeconomic changes: we need to control our future by building a healthy, profitable, business regardless of macroeconomic conditions," McGinley-Stempel wrote in the layoff email. "Placing ourselves on a faster path to profitability requires us to rethink our organizational structure and what's needed to continue serving and growing our customer base more efficiently."
Stytch did not return a request for comment.
