Over 1,000 employees, or 14% of the workforce, are laid off by Stripe

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Clasmatic

By: Savardekar

The major Silicon Valley payments company Stripe announced that 14% of its workforce had been laid off.

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CEO Patrick Collison stated that Stripe needs to reduce costs due to global issues like inflation, rising interest rates, & "scarce startup funding."

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Collison acknowledged mistakes made by Stripe management over the previous 2.5 years.

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He claimed that the business "overhired" during the pandemic and had "too high an expectation" for the rapid expansion of e-commerce.

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The employee base at Stripe has more than doubled over the last two years, according to LinkedIn data.

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With the recent layoffs, it will have fewer employees than it did in February 2022, when it had more than 7,000. 

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Furthermore, according to Collison, Stripe "grew operating costs too quickly" and "allowed operational inefficiencies to seep in."

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He claimed that some departments are experiencing deeper budget cuts than others, such as recruiting.

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For affected employees, Stripe is offering 14 weeks’ severance and “the cash equivalent of 6 months of existing healthcare premiums.

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It’s also paying out full-year 2022 bonuses. 

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