Stripe Cuts 14% of Staff as CEO Admits Overhiring Mistakes
Fintech giant Stripe lays off over 1,100 employees, citing over-optimism about internet economy growth and rapidly rising operating costs. CEO Patrick Collison takes full responsibility for the miscalculations amidst a broader industry downturn.
Stripe lays off 14% of its workforce, impacting approximately 1,120 employees across the fintech company. This reduction follows similar recent cutbacks at other fintech firms like Brex and Chime, reflecting a broader trend of downsizing in the sector.
CEO Patrick Collison takes direct responsibility for the layoffs, admitting that leadership makes two major mistakes regarding the company's direction. He explains that Stripe is too optimistic about the near-term growth of the internet economy and allows operating costs to grow too quickly, leading to operational inefficiencies.
Impacted employees receive a minimum of 14 weeks of severance pay based on their tenure, along with their prorated 2022 annual bonus and compensation for all unused paid time off. The move comes as Stripe's internal valuation reportedly drops from $95 billion to around $74 billion.