Much of the world’s attention of late has been focused on massive layoffs at companies like Twitter, Amazon, and perhaps soon Google. It’s all part of the ongoing reckoning in tech that has been unfolding as money finally got more expensive and investors have grown tired of the growth at all costs ethos.

The reckoning seems to be falling on legacy tech companies as hard as it is on high-flying startups and recently minted unicorns. One space we often cover, the BNPL (buy now, pay later) wing of fintech, is beginning to feel this wrath.

While the payments methodology remains popular with consumers — one survey estimates 28% of holiday shoppers will use BNPL this season — it is also fraught with challenges. These headwinds include intense competition, a lack of profitability (which gets harder as the cost of money rises), and growing regulatory scrutiny. In addition, less financially risky consumer options like ‘save now, buy later’ are emerging.

BNPL Zilch Adds $50M to $110M Series C with No Loss in Valuation

So we were not surprised to read this week that the UK-based BNPL fintech Zilch is planning a round of layoffs, according to a report in The Evening Standard. According to the report, Zilch plans to cut about 10% of its workforce as part of a restructuring effort.

Raised $160M in June

This news comes less than six months after Zilch raised a $160 million Series C venture funding round (in two waves), which we reported on back in June. That round pushes Zilch’s valuation above $2 billion.

This is just more evidence that in this environment, being well-fund is not a reliable signal that a company will resist imposing layoffs. It seems to be what investors are demanding across the board. And for the most part, founders are obliging.

Zilch’s approach sets it apart from other BNPL players. Here is what we said when we wrote about Zilch in June.

Most of the big BNPL players operate through retailer partnerships. Zilch on the other hand is a direct-to-consumer model. Zilch works with any merchant that accepts Mastercard. Customers can pay on debit (with up to 2% instant cashback and rewards) or credit (pay-in-4) for no interest or late fees, anywhere.

Zilch’s expected layoffs are not the only ones happening in BNPL. Earlier this year, Swedish BNPL giant Klarna (which took a massive hit to its valuation during the tech slowdown) cut its workforce by 10%. Now, Klarna CEO insists the company will be profitable next year.