{"id":549637,"date":"2023-02-09T06:49:26","date_gmt":"2023-02-09T03:49:26","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/payments-provider-affirm-to-sunset-crypto-program-after-19-staff-cut\/"},"modified":"2023-02-09T06:49:26","modified_gmt":"2023-02-09T03:49:26","slug":"payments-provider-affirm-to-sunset-crypto-program-after-19-staff-cut","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/payments-provider-affirm-to-sunset-crypto-program-after-19-staff-cut\/","title":{"rendered":"# Payments provider Affirm to sunset crypto program after 19% staff cut"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a245dc763d9c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a245dc763d9c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/payments-provider-affirm-to-sunset-crypto-program-after-19-staff-cut\/#%E2%80%9D_Payments_provider_Affirm_to_sunset_crypto_program_after_19_staff_cut_%E2%80%9C\" >&#8221; Payments provider Affirm to sunset crypto program after 19% staff cut &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Payments_provider_Affirm_to_sunset_crypto_program_after_19_staff_cut_%E2%80%9C\"><\/span>&#8221; Payments provider Affirm to sunset crypto program after 19% staff cut &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-4bbf85c5>Max Levchin, the CEO of buy-now-pay-later company Affirm, has confirmed that they will be shutting down their \u201cAffirm Crypto Program\u201d amid dampening consumer spending and a changing macroeconomic environment.<\/p>\n<p>The CEO <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/investors.affirm.com\/static-files\/7567093d-eaad-4ab3-ab23-f4ea7df3238b\">released<\/a> a letter to shareholders on Feb. 8 alongside a 19% staff cut. He cited uncertain macroeconomic conditions and the need to offset some liabilities on the firm\u2019s balance sheet as the two main reasons behind the decision:<\/p>\n<blockquote><p>\u201cIn a period of increased economic uncertainty, we are doubling down on our core businesses, delaying projects with less certain revenue timelines, and aligning our operating expenses with revenue. Concurrent with reducing our workforce, we are sunsetting several initiatives, such as Affirm Crypto.\u201d<\/p><\/blockquote>\n<p>The firm\u2019s chief financial officer Michael Linford said the decision was made to meet profitability goals.<\/p>\n<p>\u201cWe have taken decisive actions to reduce expenses. We believe our cost base is now <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ropriately sized to meet our profitability goals while still supporting our product roadmap and long-term growth ambitions,\u201d he said.<\/p>\n<p>Affirm is a millennial-facing payments service provider similar to Afterpay which allows customers to purchase a product online and pay later. <\/p>\n<p>The firm launched the \u201cAffirm Crypto Program\u201d in late 2021 near crypto\u2019s market peak when it partnered with Bitcoin payments platform NYDIG to process Bitcoin (BTC) transactions and provide a crypto account for Affirm users.<\/p>\n<p>The program enabled users to set up a scheme where monthly interest accrued from a user\u2019s savings account would be automatically converted into BTC.<\/p>\n<p>However, Affirm noted its cryptocurrency program will officially close on Mar. 31, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/helpcenter.affirm.com\/s\/article\/about-affirm-crypto\">according<\/a> to the Affirm website:<\/p>\n<blockquote><p>\u201cOn March 2, 2023, the ability to purchase bitcoin through the Affirm app will end. We will be discontinuing the Affirm Cryptocurrency Program on March 31, 2023. <\/p><\/blockquote>\n<p>\u201cAny bitcoin in your account when the program ends will be sold at CME CF Bitcoin Reference Rate (BRR) as of 4:00 p.m. London Time, and the sale proceeds will be deposited into your Affirm Savings account,\u201d the note added.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/a3f61f20-fc63-4438-b61c-558c2254dcef.jpg\"><figcaption style=\"text-align: center;\"><em>As of Mar. 2, Affirm users will no longer be able to buy Bitcoin. Source: <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/helpcenter.affirm.com\/s\/article\/about-affirm-crypto\"><em>Affirm.<\/em><\/a><\/figcaption><\/figure>\n<p>The shutdown is of course a part of a larger staff cleanout for the San Francisco-based lending platform.\u00a0Levchin said the 19% reduction in its workforce took effect today.<\/p>\n<p>In a Feb. 8 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/investors.affirm.com\/news-releases\/news-release-details\/message-founder-and-ceo-max-levchin\">note<\/a> to employees, Levchin shouldered the blame by stating that he acted too slowly to actions from the U.S. Federal Reserve:<\/p>\n<blockquote><p>\u201cEverything changed in mid-2022. Over the last three quarters, the Fed increased its benchmark rate at an unprecedented pace. This has already dampened consumer spending and increased Affirm\u2019s cost of borrowing dramatically. The root cause of where we are today is that I acted too slowly as these macroeconomic changes unfolded.\u201d<\/p><\/blockquote>\n<p>Approximately 2,593 individuals claim to be employed at Affirm, according to current figures from LinkedIn.<\/p>\n<p>This means about 500 people were likely impacted by today\u2019s announcement.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Coinbase to cut another 20% of its workforce in second wave of layoffs<\/em><\/strong><\/p>\n<p>Cointelegraph reached out to Affirm to find out how many employees related to its crypto initiative were impacted, however, no additional information was shared. <\/p>\n<p>The CEO did however state in the letter that he expects to keep the current headcount to remain essentially flat for the foreseeable future. <\/p>\n<p>The price of Affirm\u2019s stock, tickered AFRM, has fallen 19.1% in after-hours trading in the NASDAQ, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.google.com\/finance\/quote\/AFRM:NASDAQ\">according<\/a> to Google Finance.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/payments-provider-affirm-to-sunset-crypto-program-after-19-staff-cut\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Payments provider Affirm to sunset crypto program after 19% staff cut &#8220; Max Levchin, the CEO of buy-now-pay-later company Affirm, has confirmed that they will be shutting down their \u201cAffirm Crypto Program\u201d amid dampening consumer spending and a changing macroeconomic environment. The CEO released a letter to shareholders on Feb. 8 alongside a 19%&#8230;<\/p>\n","protected":false},"author":1,"featured_media":549638,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2023-02\/b06bdf1b-a94d-4543-ad43-072167caaccf.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,77595,74889,74355,117,70550,72332,67874],"class_list":["post-549637","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-lending","tag-payments","tag-adoption","tag-business","tag-federal-reserve","tag-nasdaq","tag-united-states"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/549637","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=549637"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/549637\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/549638"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=549637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=549637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=549637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}