Stripe is set to cut over 1,000 jobs to lower its costs as economy worsens

Stripe is set to cut over 1,000 jobs to lower its costs as economy worsens

Stripe’s co-founders, Patrick and John Collison, have written an email to staff letting them know that they will be axing 1,000 jobs, according to Bloomberg News, which was shown the email. This represents a cut of 14% and will return the total headcount to 7,000 – which was the figure in February this year.

In the message, the Collison brothers said they were previously too optimistic about the economic outlook this year and next. They said:

“We were much too optimistic about the internet economy’s near-term growth in 2022 and 2023 and underestimated both the likelihood and impact of a broader slowdown. We grew operating costs too quickly. Buoyed by the success we’re seeing in some of our new product areas, we allowed coordination costs to grow and operational inefficiencies to seep in.”

The company will not be laying off people evenly throughout the company, the brothers said that the recruiting part of the business would face the heaviest redundancies because the company won’t be hiring many people next year.

Those who are affected by job cuts will receive at least 14 weeks of severance pay, they will also be paid annual bonuses and unused paid time off. With the 14 weeks severance pay, that should give those affected about 3 months to find a new job before they need to find income from somewhere else.

Source: Bloomberg