US-based Banking-as-a-Service platform Synapse has laid off 40% of its employees in its second round of job cuts this year.

Facts

• 86 employees, about 40% of the workforce, were laid off by Synapse.
• CEO Sankaet Pathak explained the decision as a restructuring to eliminate positions related to unrealized growth or redundancy.
• Despite the layoffs, Synapse believes it still has a strong team to manage operations and customers.
• Fintech Business Weekly’s Jason Mikula reported that a major client, Mercury, will not renew its contract with Synapse and plans to move to Evolve.
• In June, Synapse had already announced a workforce reduction of 18%, citing macroeconomic conditions affecting growth.
• Founded in 2014 and headquartered in San Francisco, Synapse provides a BaaS platform for launching various financial products through APIs and raised $33 million in a Series B funding round in June 2019.