Stripe cuts of 14% its workforce

In a memo to employees Thursday, Stripe CEO Patrick Collison said that the company would be letting go of about 14% of its staff.

Image credit: getty image

Collison said the cuts were essential due to inflation, recession fears, increased interest rates and scarce startup funding etc

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These variables imply "a new economic climate in 2022," he said.

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Collison said the corporation made "two extremely serious blunders" by misjudging internet growth and growing operating costs too quickly.

As the economy worsens, IT businesses have announced layoffs and hiring freezes. Amazon, Alphabet, and Meta have cut costs

Stripe was valued at $95 billion last year, but dropped its internal valuation to $74 billion in July

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Stripe will decrease its workforce to 7,000, resulting in 1,100 layoffs.

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Stripe's spokesman couldn't immediately say how many employees were affected.

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The company wants to hire fewer people next year, so many of the losses will be in recruiting, Collison said

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In addition to layoffs, Stripe plans to reduce expenses across the board, according to Collison.

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Patric collison and John Collison, his brother, were both "totally responsible for the decisions leading up to this move"

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Collision brothers said "extremely sorry to be taking this step."

Image credit: getty image