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Affirm has announced a 19% workforce reduction.
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The company reported Q2 earnings that were below analyst expectations.
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As a result, shares of Affirm dropped by 17%.
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CEO Max Levchin called the decision to lay off workers the "single most difficult" decision for the company.
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Approximately 485 employees will be impacted by the layoffs.
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Levchin said the company hired too many employees ahead of revenue during the early pandemic.
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Federal Reserve policy and a decrease in consumer spending led to the company's financial struggles.
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The company reported a loss per share of $1.10 in Q2 2023.
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Levchin said Affirm plans to keep headcount "essentially flat" in the future.
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Laid-off workers in the U.S. will receive a minimum of 15 weeks' base pay, plus a $5,000 health stipend, and can keep Affirm-issued devices. Non-U.S. employees will receive severance and healthcare benefits in line with local practices.