Global financial leader Stripe said that it will reduce its workforce by 14% in an effort to prepare for “leaner times.”
The founders of the business, Stripe, stated in an email to staff that they want to match the speed of investment with current conditions, such as inflation, energy shocks, higher interest rates, smaller investment budgets, and scarcer startup funding.
The business estimates that after the layoffs, its workforce would be reduced to just under 7,000 individuals.
The economic transition for Stripe follows some large pandemic-induced growth, which enabled the company’s revenue and payment volume to increase by more than three times.
The company’s founders admitted that it overhired during the boom and accepted full responsibility for the layoffs. It frequently recruits people from Southeast Asia. Co-founder of the Singapore-based Dashibase, Alfred Lua, has updated the list of persons impacted and shared it online.
In addition to severance pay, bonuses, healthcare benefits, and career support, the notification details the compensation that impacted workers are entitled to.
In order to generate strong cash flow in the upcoming quarters, Stripe said it would be “firmly reigning in any other sources of expense” going forward.
