Fintech firm nCino has announced a 7% reduction in its workforce, with plans to trim nearly 120 employees from its roster.
Headquartered in Wilmington, the software-as-a-service firm has about 1,700 employees among its nine locations across the globe.
CEO Pierre Naudé informed the workforce of the executive leadership team’s decision Wednesday morning; the company shared the message publicly after the markets closed.
nCino spokesperson Kathryn Cook said of the companywide cuts, 30%, or about 35, are based in Wilmington. As of Dec. 1, a firm spokesperson told the Business Journal it employed about 880 in Wilmington.
Laid-off employees are being provided at least 12 weeks of severance pay, eligibility for a fiscal year 2023 bonus, 12 weeks of career support and health benefits throughout the duration of the severance period for U.S.-based employees; non-U.S.-based employees will receive a lump sum payment. Equity grants slated to vest on or prior to Aug. 1 will be fully vested, Naudé told employees.
“As we have discussed with you over the past several quarters, the market we operate in has been changing significantly, with mortgage rates rising faster than at any time in memory, macroeconomic and geopolitical challenges in Europe, and a slowdown in the broader economy,” he wrote in the email.
The layoffs come amid recent economic turmoil, with job cuts especially affecting technology firms across the nation. Since last week, Microsoft and Salesforce – a platform nCino relies on – slimmed their staff counts by about 5% and 10%.
nCino sells its software to banking institutions to improve customer and employee interfaces. Founded in 2011, it is a spin-off of another locally headquartered fintech heavyweight, Live Oak Bank.
In recent years, nCino has acquired a handful of businesses, adding on Visible Equity and FinSuite in 2019. In early 2022, it absorbed SimpleNexus
in a roughly $1.2 billion deal.
The cloud banking leader expanded its headquarters
with a new 90,000-square-foot office space last year, its fourth building in the Mayfaire area. At the time, firm officials did not announce a hiring goal associated with the expanded space.
In its latest earnings report
, released Nov. 29, nCino reported 50% revenue growth, earning $105 million in the third quarter of fiscal year 2023. Chief financial officer David Rudow said in its earnings call with investors that the firm’s No. 1 priority is growth and that it was planning on a 20% revenue boost ahead.
In his Wednesday message to employees, Naudé referenced a strategic shift discussed in the earnings call. “We are taking action to change from a pure growth company to a best-in-class profitable growth company,” he wrote.
The changes will allow nCino to continue operating from a position of strength, Cook said. “With that being said, today was a sad day for everyone as we said goodbye to a number of talented colleagues who have worked hard and made a positive impact at nCino.”
Correction: This article has been updated to correct a photo caption referencing the percentage of local employees impacted by the layoffs.