Affirm cuts 19% of workforce; shares tank on earnings miss

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Affirm Holdings Inc. website home screen on a laptop computer in an arranged photograph taken in Little Falls, New Jersey.

Gabby Jones | Bloomberg | Getty Images

Affirm announced its cutting 19% of its workforce as it reported second quarter earnings that fell below analyst estimates on both the top and bottom lines.

Shares were down more than 17% after hours.

In his letter to shareholders Wednesday, Founder and CEO Max Levchin called the decision “the single most difficult one” of all the cuts the company chose to make, and said the layoffs would be effective that day.

The company reported a loss per share of $1.10 for its fiscal second quarter of 2023, while analysts were anticipating a loss of 98 cents per share, according to Refinitiv. It also missed on revenue expectations, reporting $400 million in revenue for the quarter compared to analyst estimates of $416 million, according to Refinitiv.

Levchin said in his letter to shareholders that Affirm continues to seek to become “adjusted operating income positive as we exit this fiscal year.”

This is breaking news. Please check back for updates.


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