Credit Karma freezes hiring amid “revenue challenges”

By Daniel Lanyon on Wednesday 2 November 2022

Alternative LendingDigital BankingSavings and Investment

One of fintech’s unicorn successes, bought by Intuit two years ago, has paused hiring.

Credit Karma freezes hiring amid “revenue challenges”
Image source: Pexels/Dan Hamill

Credit Karma is pausing hiring amid “revenue challenges”, according to internal documents seen by AltFi

In a message to all ”Credit Karma’s c.2000 employees, chief people officer Colleen McCreary wrote of “revenue challenges due to the uncertainty of the macroeconomic environment”.

“Our partners worry about lending products among high inflation, the potential for rising unemployment and possibility of recession which results in fewer opportunities for us to provide products for a broader range of members,” it said.

However, the company has hired over 500 new employees in just over a year resulting in a 30 per cent headcount growth. In addition, the company has c.100 who have recently been offered a job of have one but are yet to start.

The message goes on to mention that its current status is not as acute financially as the early pandemic period. In 2020 the company cut salaries by 15% to 50 across the board to avoid layoffs. Today it says the company is still focussed on profitability. 

Credit Karma was founded in 2007 by CEO Ken Lin, Ryan Graciano and Nichole Mustard. Intuit bought Credit Karma for $7.1bn in cash in late February of 2020, just a month or so ahead of the first pandemic global lock downs.

A spokesperson for Credit Karma told AltFi,  that “like most companies, Credit Karma is keeping a close eye on the current economic conditions and we have gotten more conservative with our hiring. 

“We are still hiring for some open roles but this move allows us optionality as a business. We always prioritize people. Back in 2020, when our business took an immediate hit from the pandemic, we made the decision to instill pay cuts instead of taking the easier route of layoffs,” they said. 

“When business bounced back a few months later in 2020, we returned every one to their full pay and even provided our employees with an extra paycheck. Over the past five quarters, we have hired over 500 people in high-paying professional full-time roles. Our decision today gives everyone a chance to get fully engaged and have opportunities to do more,” they added.

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Credit Karma