Global fintech major Stripe will be cutting around 14% of its team in an effort to adjust its business for “leaner times,” the company stated.
Stripe headquarters in San Francisco / Photo credit: 123rf.com
In an email to employees published on Stripe’s website, the firm’s founders said they aim to match the pace of the company’s investments with current realities, which include inflation, energy shocks, higher interest rates, reduced investment budgets, and sparser startup funding.
Following the layoffs, the company’s headcount will shrink to almost 7,000 people, it says.
For Stripe, the economic shift comes at the back of some significant pandemic-induced growth, which helped the firm’s revenue and payment volume to rise by more than 3x.
The founders shared that the company had overhired in the boom period and took full responsibility for the layoffs. Many of its hires are from Southeast Asia. Alfred Lua, co-founder of Singapore-based Dashibase, has posted an updated list of those affected.
The announcement specifies the compensation due for affected employees, including severance pay, bonus, healthcare, and career support.
Going forward, Stripe says it will be “firmly reining in all other sources of cost” to achieve robust cash flow generation in the quarters ahead.
See Also: Stripe readies Indonesia entry, but the road just got rougher
Editing by Miguel Cordon and Jaclyn Tiu
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