We shared this note with our team today. We are sharing it here too, in the spirit of transparency.

--

Team,

I wanted to update everyone that Doron and I made the decision to reduce the size of our team by ~15%.

Today, our first priority is affected team members. Each one of them has helped make Unit what it is today. We will be meeting with them this morning to walk them through the separation packages we’ve put together to support them in the transition.

As always, it’s important for me to communicate transparently and share some context on what led to this decision - and what’s next.

We believe that our company needs to think in longer time frames. Banks in the fintech ecosystem have slowed down in the last year due to increased regulatory scrutiny. While we believe that the slowness is temporary and Unit will actually benefit from the resulting regulatory clarity, it will take time. For now, we need to focus on efficiency and account for slower than expected revenue growth.

Unit has always maintained a large balance sheet, and the changes we are making today will further solidify our strength. While we could choose to raise additional capital in the future, we’re executing on a plan to become profitable without the need to do it. This independence will help us realize our mission - powering modern financial experiences - reliably and for the long term.

We’re proud of the progress we’ve made to date. The product we offer to our ecosystem - banks, clients, and end-customers - was built from the ground up and has positioned us as a category leader. Banks rely on Unit to manage $1b+ in deposits and reliably process $40b+ in annualized transaction volume. We have built trust and rich relationships, with banks, clients, and many other important external stakeholders. We will keep building them.

We believe that the end-customer demand for modern financial services is stronger than ever, and that quality infrastructure is the only way to power these services. Unit is still in its early days. We’ve recently seen strong and new types of demand for our product, such as banks using Unit and its white-label app to power their own bank-branded digital experiences. We’re eager to continue building and powering modern financial services in more ways.

Our goal is to build a great company that’s here for the long-term - that has not changed. We’ll dedicate the coming days and weeks to spending time together as a team. Feel free to reach out to us if you have any questions.

Itai & Doron

‍