Payments behemoth Stripe is the latest fintech to take the axe to its global workforce, laying off more than 1100 - 14% - of its staffers.
Outlining the cuts in a note sent to employees and posted online, Stripe CEO Patrick Collison cites "the beginning of a different economic climate".
However, he also acknowledges that the company's leadership "made two very consequential mistakes". First, the firm was too optimistic about the internet economy's near-term growth, and second, it grew operating costs too quickly.
The firm embarked on a hiring spree as it adjusted to the surge in e-commerce growth during the pandemic.
But, Collison says that the "world is now shifting again", facing up to inflation, energy shocks, higher interest rates, reduced investment budgets, and sparser startup funding.
"We overhired for the world we’re in, and it pains us to be unable to deliver the experience that we hoped that those impacted would have at Stripe," he writes.
In July, Stripe slashed its valuation by 28%, wiping $21 billion off its $95 billion valuation at a March 2021 funding round.
Collison insists that Strip is "fundamentally well-positioned to weather harsh circumstances" but needs to match investments with the new economic realities.
Laid off staff will get at least 14 weeks of severance pay and their 2022 bonus, as well as career and immigration support.
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