The Bank Slate


BM Technologies cutting 25% of its workforce

BM Technologies in Radnor, Pa., which tried unsuccessfully to buy a bank last year, plans to lay off about 25% of its workforce.

The fintech also said in a press release that Jamie Donahue, its chief technology officer, had become its president. Donahue, who joined the company in 2020, will be responsible for leading IT, operations, product and program management and sales teams.

BM Technologies said that the job cuts will take place between now and June 30. The moves will save $15 million this year and $18 million in subsequent years.

The company expects to incur about $1.5 million to $3 million in charges tied to the plan, which “substantially all” of them occurring in the first quarter.

“The fintech industry is still in its early stages and continues to grow, but market dynamics are substantially different than they were a year ago,” Luvleen Sidhu, the company’s chairman and CEO, said in the release.

“Companies across the spectrum must adjust to new market realities including the current high interest rate and inflationary environment,” Sidhu added. “Our objective is to position BMTX for the next level of growth for our customers and shareholders as we accelerate expansion opportunities while strengthening our financial position.”

The company also announced that Raj Singh had joined its board. Singh was vice chairman of investment banking at Raymond James from 2017 to 2023.

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