Following in the footsteps of other fintech and cryptocurrency startups, payments company Stripe is laying off 14% of its workers.
Why the layoff?
In response to ongoing layoffs at fintech and cryptocurrency firms, payments company Stripe is laying off 14% of its workers. The business blamed changes in startup funding and the macroeconomic climate. Employees received an email (1) informing them of the cuts. Founders Patrick and John Collison accepted responsibility for the choice.
They are overhired for the world they're stated. It hurts them to be unable to give the experience that we intended that individuals impacted would have at Stripe. The revelation comes after other big layoffs in the fintech and crypto industries, as well as a decline in the pricing of both traditional and crypto assets due to unrest in the global economy.
Collison mentioned that, in terms of severance, everyone affected would get at least 14 weeks' compensation, depending on how long they had worked for the firm. The yearly incentive for 2022 will be paid in full by Stripe, he added, but it will be prorated if the employee only started this year. Additionally, he stated that Stripe will give healthcare coverage six months after each departure and that all unused paid time off (PTO) will be compensated.
It's not just them
Bitmex (2), a cryptocurrency exchange, reduced its personnel by 30% two days ago. In the past, businesses like Coinbase, Robinhood, and Bitpanda also cut back on staff. Stripe provides payment solutions for cryptocurrency companies and supports USDC stablecoin payments on Polygon. After the layoffs, Stripe will employ about 7000 people, about the same as it did in February.
