SoFi, one of the most successful Fintechs in the US, has eliminated 112 positions following “performance reviews.” The news comes following reports that SoFi was experiencing a COVID-19 driven boom for their trading and investment feature.
According to a report by BI, SoFi cut 7% of its staff based on performance reviews. Additionally, some employees were eliminated due to process automation.
SoFi recently has recently made some meaningful acquisitions. In early April, SoFi acquired Galileo Financial Technologies for $1.2 billion in both cash and stock. Galileo is a global payments Fintech. SoFi Money is already integrated with Galileo’s payment platform including several of its account and events API functionalities.
Later the same month, SoFi announced the acquisition of 8 Securities in Hong Kong positioning the company for a pan-Asian expansion.
SoFi is not the only prominent Fintech that has scaled back full-time employees or furloughed staff during the Coronavirus crisis. But SoFi appears to be a Teflon Fintech doing fine while other Fintechs struggle, especially those in the consumer lending sector.