The digital banking firm BM Technologies in Radnor is cutting 25 percent of its workforce as part of a “profit enhancement plan.”

The company did not say how many employees would be affected.

BM, formerly known as BankMobile, has 275 employees with about 36 percent based in the region.

The company also named a new president and chief financial officer, writes Jeff Blumenthal for Philadelphia Business Journal.

BM’s move to streamlining its operations and strengthen ts management team, comes shortly after it opted not to acquire Seattle-based First Sound Bank.

CEO and Founder Luvleen Sidhu said the changes will allow BM to refocus on being a “lean, efficient, innovative fintech with a strong focus on risk management.”

Sidhu said market dynamics have changed from a year ago, with companies having to adjust to new market realities like currently high interest rates and inflation.

The plan reduces operating costs by about $18 million annually, while improving operating margins and cash flow.

BM earned $3.4 million in the first nine months of 2022. It lost $4.9 million in the third quarter. It posted a profit of $17 million in 2021 and lost over $12 million in 2020.

Read more about cutbacks in BM’s workforce at Philadelphia Business Journal.

BM Technologies CEO Luvleen Sidhu talks about digital banking at Planet MicroCap.