Payments startup Bolt Financial is planning to lay off about one-third of its workforce in line with its restructuring efforts, reported Bloomberg News citing a person familiar with the development.

The firm is slashing as many as 250 jobs, according to the source.

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Bolt CEO Maju Kuruvilla informed the employees in a blog post that the redundancies are part of a broader restructuring, which aims to strengthen the firm’s focus on core business and products.

Kuruvilla said: “It’s no secret that the market conditions across our industry and the tech sector are changing, and against the macro challenges, we’ve been taking measures to adapt our business.

“In an effort to ensure Bolt owns its own destiny, the leadership team and I have made the decision to secure our financial position, extend our runway, and reach profitability with the money we have already raised.”

The company has already started holding meetings with employees as part of the layoffs.

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Founded in 2014, Bolt is said to be one of the most valued startups in the US with a valuation of $11bn.

The firm offers a platform that enables retailers to provide one-click online checkout options to consumers.

Bolt’s trouble began last month when it was sued by Forever 21 parent ABG over its alleged failure to deliver the promised technical capabilities, according to the Bloomberg report.

Recently, the firm’s co-founder Ryan Breslow stepped down as CEO after receiving a backlash for his controversial Tweets which claimed Silicon Valley’s elite is a “boys club” filled with “mob bosses.”

Meanwhile, Bolt is not the only fintech startup preparing to trim the employee headcount amid the growing market turbulence.

Recently, Swedish fintech firm Klarna also revealed a plan to slash its workforce by 10% amid difficult market conditions and increasing regulatory crackdown in the buy-now-pay-later segment.