US fintech MainStreet lays off 30% of employees

California-based fintech MainStreet, which helps start-ups and small businesses discover and claim tax credits and government incentives, has laid off around 30% of its staff, with CEO Doug Ludlow citing “today’s incredibly rough market” as the reason behind the cuts.

MainStreet lays off 30% of its staff

“We took this action because we believe that there is a very strong chance that today’s incredibly rough market is only going to get worse, and potentially remain so for months, if not years,” Ludlow writes on Twitter.

“We need to ensure that as a company we are in control of our own destiny, not subject to the whims and waves of the market. This reorg is one of the steps that puts us on a near-term path to profitability and self-sustainability.”

There is no mention of the exact number of employees who will lose their jobs at MainStreet.

“We did not take this decision lightly, and we are doing everything within our power to provide as much transition assistance (severance, health care, recruiter and job placement assistance) as is possible,” adds Ludlow.

Founded in 2019, MainStreet claims to have saved over $100 million for more than 2,000 companies in the US through recommendations on government tax credits, treasury management and savings on tools that businesses use every day.

The firm last raised $2 million in a debt financing round in January 2022, and $60 million in a Series A round led by SignalFire in March 2021.

The news follows a string of layoffs in the fintech space in recent days. Australian BNPL fintech BizPay announced a similar 30% staff cut, while Robinhood is also shedding 9% of its full-time workforce.