Fintech Firm Brex Is Latest To Join Layoffs Spree; Cuts 20% Of Jobs

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New Delhi: The year just started, and even the first month has not been completed, and sadly, many tech and startup workers have lost their jobs. In 2023, a lot of people faced tough layoffs. It seems that the trend will continue in the ongoing year. This time US-based fintech company Brex has decided to make some big changes in how it operates.

This includes letting go of about 20 percent of its workforce, which amounts to 282 employees. The decision comes as part of a restructuring effort to transform Brex into a more agile and fast-moving company. ()

Founder's Message To Employees

Brex Founder and co-CEO Pedro Franceschi shared the news with employees, explaining that the restructuring aims to turn Brex into a high-velocity company. Unfortunately, this means saying goodbye to 282 team members, which makes up about 20 percent of the company's workforce. ()

Reasons Behind Workforce Reduction

Franceschi pointed out that although Brex's solutions for managing spending present a huge opportunity, the company has grown too fast. This rapid growth was slowing down its ability to operate as efficiently as before.

The decision to reevaluate the organization's structure was made to streamline operations and enhance the company's speed.

Support For Affected Employees

To support the impacted employees, Brex is providing eight weeks of severance pay, along with an additional two weeks of pay for each year of service.

Those who haven't reached their one-year equity cliff will have it waived. The company is also offering outplacement support to assist with job searches. The laid-off workers can keep their laptops to ease the transition.

Previous Workforce Changes In 2022

This isn't the first time Brex has made adjustments to its workforce. In 2022, the company laid off 136 employees, which was about 11 percent of its total workforce. These changes were part of an earlier restructuring effort that affected various departments within the company.

(With inputs from IANS)