BMTX - BM Technologies to reduce workforce by ~25% appoints president
- Digital banking platform and banking-as-a-service provider BM Technologies is reducing its workforce by ~25%, and has elected Jamie Donahue president.
- The company said it targets ~$18M in annualized cost reductions with ~$15M of savings in 2023 as part of a profit enhancement plan.
- Additionally, the company that was formerly known as BankMobile will exercise other spend reduction and service provider rationalization, anticipating the cost reductions to be substantially completed by Jun. 30.
- The company estimates to incur ~$1.5M to $3.0M in charges in connection with the plan, substantially all of which expected to be incurred in Q1'23.
- Separately, Executive Vice President and Chief Technology Officer Donahue will be responsible for leading IT, operations, product and program management, and sales teams in his new role.
- Additionally, CFO Robert Ramsey has been elevated to a new corporate development role.
- Chief Accounting Officer James Dullinger has been elected CFO.
- The company also appointed investment banking veteran Raj Singh to the board, effective Jan. 27.
- Source: Press Release
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BM Technologies to reduce workforce by ~25%, appoints president