BM Technologies implements Profit Enhacement Plan, to reduce staff by 25%

BM Technologies announced a series of actions being taken to streamline its operations, strengthen its management team, position the Company for future growth, and drive long-term shareholder value. In connection with its previously announced near-term strategy to focus on being an innovative, efficient, risk-oriented Fintech with a sponsor bank model, rather than becoming a bank, the Company committed to a targeted Profit Enhancement Plan on January 26, 2023 that it expects to deliver approximately $18 million in annualized cost reductions with approximately $15 million of savings expected in 2023. The Plan is intended to reduce operating costs, improve operating margins, improve operating cash flow, and continue advancing the Company’s ongoing commitment to profitable growth and continued innovation, and direct the Company’s resources toward its best opportunities. Included within the Plan is a targeted reduction of the Company’s employee workforce of approximately 25% as compared to its headcount at December 31, 2022. This workforce reduction is in addition to other spend reduction and service provider rationalization. The Company expects the actions necessary to attain these cost reductions will be substantially completed by June 30, 2023. The Company estimates that it will incur approximately $1.5 million to $3.0 million in charges in connection with the Plan, substantially all of which are expected to be incurred in the first quarter of 2023.