Aspiration to Lay Off 180+ Employees in Restructuring Amid Economic Conditions
Aspiration, a climate-focused neobank, is set to lay off over 180 employees as part of a company-wide restructuring. This move comes amidst economic conditions and limited capital availability, marking the second round of layoffs since December 2022.
The layoffs, scheduled between May 26 and June 1, will impact various departments including software engineers and marketing positions. This decision follows a leadership change in fall 2022, with Olivia Albrecht replacing Andrei Cherny as CEO. Under Albrecht, Aspiration shifted its focus to selling carbon credits to corporations and paused new digital banking products.
Aspiration's plan to go public through a merger with InterPrivate III Financial Partners Inc. has faced multiple delays. Initially announced in August 2021 with a valuation of $2.3 billion, the deal was expected to be completed in early 2022. However, the completion date has been pushed to May 1, 2023. The merger was intended to raise capital and make Aspiration a publicly traded company. This restructuring also led to the departure of Aspiration's chief of staff and chief administrative officer.
With over 5 million accounts and investments from celebrities like Leonardo DiCaprio, Cindy Crawford, and Orlando Bloom, Aspiration's restructuring aims to navigate current economic conditions. The layoffs, spanning multiple departments, are a significant step in this process.
