Fintech nCino cuts 7% of workforce, CFO quits
Fintech nCino cut 7% of its workforce, or 117 employees, on Wednesday.
Some of the outgoing employees were from recently bought SimpleNexusconfirmed a spokesperson for the company.
A letter written by Pierre Naudé, CEO of nCino, was circulated throughout the company informing employees of the impending reduction. Affected employees were notified within 15 minutes of Naude’s letter being published.
“Although it is difficult to share, I am announcing that we will be reducing the size of our nCino team by approximately 7%,” Naudé wrote. “If you know me, you know that I care deeply about our team members and I speak for all [executive leadership team] when I say this is one of the most difficult decisions we have made to date.”
The way forward for nCino, a provider of technology solutions for both the banking and mortgage industries, 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 remain very confident 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 Dailythose affected received 12 weeks of severance pay, 2023 bonus eligibility, two weeks of career support and health benefits “for the defined severance period for US employees and a one-time payment for non-US based employees.”
Equity vesting will be accelerated “so that any equity grants scheduled to vest before August 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, the CFO, would be stepping down effective January 31. Greg Orenstein, head of corporate development and strategy, will take on the role.
A tough macroeconomic climate has put pressure on many fintechs and housing-related companies, causing layoffs and even business closures.
In December, UpEquity, a real estate start-up, came close 25% of employeeswhile two other mortgage technology brands with cash purchase business models, Orchard and bandalso announced cutbacks in late November in response to contracting volume.
Meanwhile, in early November, digital mortgage and fulfillment provider Promontory MortgagePath announced that it would closure its doors due to “unprecedented and rapid deterioration of the mortgage market.”
