After the payment provider Klarna, the Berlin banking and accounting startup Kontist (https://kontist.com) has to lay off a quarter of its team because of financial pressure and the need for strategic changes in its business model. The FinTech segment switches into consolidation mode and will force its startup to restructure or die.
The banking startup Kontist has terminated 50 employees, about a quarter of the team. According to a company statement, the layoffs resulted from the business’s restructuring. Kontist would put a stronger focus on tax consulting for business customers.
Investors are increasingly critical of loss-making fintech companies. In recent days, numerous startups have terminated parts of their workforce. The most prominent case is the Swedish payment provider Klarna, which has dismissed ten percent of its employees. PayCom42 reported.
Global venture capitalists are urging their portfolio companies to pay more attention to costs. After several years of the upswing, in which startups were desperately looking for new employees, a change of times is now imminent. The market seems to enter into the consolidation mode, which will likely result in many startups’ death.
