Chime, a digital bank serving the B2C segment, has laid off 12% of its staff, or nearly 160 employees in order to control costs and improve profitability amid unfavorable market conditions despite assuring it is well capitalized.

Analyst QuickTake: In similar moves, other neobanks such as Brex and Varo have also laid off employees this year with the aim of improving profitability and avoiding the need to raise any additional funds possibly at lower valuations. Furthermore, the layoff follows Chime’s decision to postpone its IPO, which it announced earlier this year , owing to the meltdown in tech stocks with publicly traded neobanks valuations such as Dave and MoneyLion plunging by over 95% and 70% YTD, respectively.