Fintech nCino slashed 7% of its workforce, or 117 employees, on Wednesday.
Some of the departing employees were from recently acquired SimpleNexus, a company spokesperson confirmed.
A letter penned by Pierre Naudé, CEO of nCino, was circulated throughout the company informing employees of the impending reduction. Employees impacted were notified within 15 minutes of Naude’s letter being published.
“While difficult to share, I am announcing that we will be reducing the size of our nCino team by approximately 7%,” wrote Naudé. “If you know me, you know I care deeply about our team members, and I speak for the entire [executive leadership team] when I say this is one of the hardest decisions we’ve made to date.”
The path forward for nCino, a provider of tech solutions for both the banking and mortgage industry is to “grow with purpose.”
“There will be challenges, but more importantly, there are exciting opportunities ahead. At nCino, we embrace the idea of being on a rocket ship. I still firmly believe in our trajectory and expect that these changes, while difficult, will set us up for long-term success,” he added.
As first reported by Port City Daily, those impacted received 12 weeks of severance pay, 2023 bonus eligibility, two weeks of career support and health benefits “for the defined severance period for US based employees and a lump sum payment for non-U.S. based employees.”
Equity vesting will be accelerated “such that any equity grants scheduled to vest on or before Aug. 1, 2023, will be fully vested,” the Wilmington, North Carolina-based fintech said in a statement.
On the same day, nCino announced that David Rudow, its chief financial officer, would be departing effective Jan. 31. Greg Orenstein, chief corporate development and strategy officer, will be taking on the role.
A tough macroeconomic climate has put pressure on many fintechs and housing-related companies, causing layoffs and even company closures.
In December UpEquity, a real estate startup, let go of close to 25% of its staff, while two other mortgage technology brands with cash-purchase business models, Orchard and Ribbon, also announced job cuts in late November in response to contracting volume.
Meanwhile in early November, digital mortgage and fulfillment provider Promontory MortgagePath announced that it would be closing its doors due to “unprecedented and rapid mortgage market deterioration.”