visimoney
TLDR:
- Fintech firm Brex has laid off approximately 20% of its workforce, or 282 employees, as part of a restructuring exercise.
- The CEO cited the company’s rapid growth as the cause for the restructuring, stating that they had grown their organization too quickly, making it difficult to operate at the speed they had in the past.
- Impacted employees will receive severance packages, including additional pay based on years of service and outplacement support for job search assistance.
- This is the second round of layoffs for Brex, as they had previously cut 11% of their workforce in 2022 as part of a previous restructuring.
US-based fintech company Brex has made the decision to lay off approximately 20% of its workforce, resulting in around 282 employees losing their jobs. The CEO of Brex, Pedro Franceschi, explained in a message to employees that the company has chosen to restructure in order to become a high-velocity company. He stated that while their spend management solutions have a “massive opportunity ahead,” the company had grown too quickly and was not operating as efficiently as it had in the past. Franceschi admitted that they had grown their organization too quickly and that this had made it harder for them to move at the speed they once did. As part of this restructuring, the company will be reducing the number of layers between leaders and the work that directly affects customers.
The affected employees will be provided with severance packages, including eight weeks of severance pay and an additional two weeks of pay for each additional year of service. The one-year equity cliff will also be waived for those who have not yet reached it. Additionally, the company will offer outplacement support to assist employees in their job search. Brex has stated that the laid-off workers will be allowed to keep their laptops to help with the transition.
This is not the first time that Brex has implemented layoffs. In 2022, the company cut 136 employees, amounting to 11% of their workforce across all departments. These layoffs were also part of a restructuring initiative. The exact reasons behind the previous round of job cuts were not specified.
The fintech industry has seen a significant impact from the COVID-19 pandemic, with many companies facing financial challenges and needing to make changes to their operations. Brex is just one example of a company in the sector that has had to make difficult decisions in order to adapt to the changing landscape. The full impact of these layoffs on the company and its future plans remains to be seen.
