AM I NEXT? NO LOVE AT SILVERGATE FINANCIAL

MARCH 8, 2023 — SILVERGATE BANK TO BE SHUT DOWN

Silvergate Capital Corporation Announces Intent to Wind Down Operations and Voluntarily Liquidate Silvergate Bank

Silvergate Capital Corporation, the holding company for Silvergate Bank, today announced its intent to wind down operations and voluntarily liquidate the Bank in an orderly manner and in accordance with applicable regulatory processes.

In light of recent industry and regulatory developments, Silvergate believes that an orderly wind-down of Bank operations and a voluntary liquidation of the Bank is the best path forward. The Bank’s wind-down and liquidation plan includes full repayment of all deposits. The Company is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets.

In connection with the above: Centerview Partners LLC is acting as a financial advisor, Cravath, Swaine & Moore LLP is acting as a legal advisor and Strategic Risk Associates is providing transition project management assistance.

In addition, Silvergate Bank made a decision to discontinue the Silvergate Exchange Network, which it announced on March 3, 2023, on its public website. All other deposit-related services remain operational as the Company works through the wind-down process. Customers will be notified should there be any further changes.

JANUARY 10, 2023 — Original post…

La Jolla, California-based Silvergate Capital, the holding company for Silvergate Bank which focuses on providing a payment network and other services to institutions in the virtual-currency industry, has announced a major reduction in force following major disruptions in the crypto-currency market leading to the loss of customer confidence.

The company's cost-containment initiative will target approximately 40% of the workforce, an estimated 200 employees.

According to CEO Alan Lane, "Significant overleverage in the industry has led to several high-profile bankruptcies and sparked a crisis of confidence across the entire digital asset ecosystem.

In addition to its crypto-related business, the bank announced in December 2022 that it was winding down its mortgage warehouse lending business due to the rising interest rate environment and reduction in mortgage volumes.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT STRIPE

San Francisco, California-based Stripe, a payment processing software and application programming interfaces for e-commerce websites and mobile applications, has announced a 14% reduction in the company's workforce.

The reduction in force will impact approximately 1,000+ employees.

According to a company spokesperson, "Today we’re announcing the hardest change we have had to make at Stripe to date. We’re reducing the size of our team by around 14% and saying goodbye to many talented Stripes in the process.

"At the outset of the pandemic in 2020, the world rotated overnight towards e-commerce. We witnessed significantly higher growth rates over the course of 2020 and 2021 compared to what we had seen previously. As an organization, we transitioned into a new operating mode and both our revenue and payment volume have since grown more than 3x."

"The world is now shifting again. We are facing stubborn inflation, energy shocks, higher interest rates, reduced investment budgets, and sparser startup fundin."

"Our business is fundamentally well-positioned to weather harsh circumstances. We provide an important foundation to our customers and Stripe is not a discretionary service that customers turn off if budget is squeezed. However, we do need to match the pace of our investments with the realities around us. Doing right by our users and our shareholders (including you) means embracing reality as it is."

"Today, that means building differently for leaner times. We have always taken pride in being a capital efficient business and we think this attribute is important to preserve. To adapt ourselves appropriately for the world we’re headed into, we need to reduce our costs."

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT UPSTART

San Mateo, California-based Upstart, a lending platform that partners with banks and credit unions to provide personal and consumer loans using proprietary non-traditional credit underwriting based on non-FICO data such as education and employment, has announced a reduction in force to adapt to changing market conditions, decreasing loan originations and rising interest rates.

The reduction in force will impact 140 hourly employees, mostly support staff for loan processing.

According to a company spokesperson, “Given the challenging economy, we are making this difficult decision for the long-term health of the company. We do not expect any further layoffs, and continue to hire for roles that are strategic to our business.”

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?