SAN FRANCISCO: Global payment processing firm Stripe on Thursday announced to cut over 1,000 jobs, or 14 per cent of its staff.
The payment processor cited "stubborn inflation, energy shocks, higher interest rates, reduced investment budgets, and sparser startup funding" as reasons for its decision.
CEO Patrick Collison wrote an email to Stripe employees, saying the company is reducing the size of its team by around 14 per cent and saying goodbye to many talented Stripes in the process.
"If you are among those impacted, you will receive a notification email within the next 15 minutes. For those of you leaving: we're very sorry," he wrote.
Collison said that the company is facing stubborn inflation, energy shocks, higher interest rates, reduced investment budgets, and sparser startup funding.
"Around 14 per cent of people at Stripe will be leaving the company. We, the founders, made this decision. 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," said the CEO.
The company will pay 14 weeks of severance for all departing employees, and more for those with longer tenure.
"That is, those departing will be paid until at least February 21st 2023. We will pay our 2022 annual bonus for all departing employees, regardless of their departure date," said Collison.
The company said it will pay the cash equivalent of 6 months of existing healthcare premiums or healthcare continuation, along with offering career support.
"We know that this situation is particularly tough if you're a visa holder. We have extensive dedicated support lined up for those of you here on visas, and we'll be supporting transitions to non-employment visas wherever we can," said Stripe.
"For those not affected, there'll be some bumpiness over the next few days as we navigate a lot of change at once. We ask that you help us do right by Stripe's users and the departing Stripes," said the CEO in the letter.