Stripe Cuts 300 Jobs Amidst Ambitious Growth Plans
In a surprise move, Stripe, the $70 billion-valued payments company, has laid off around 300 employees, accounting for approximately 3.5% of its workforce. The majority of the cuts were made in product, engineering, and operations departments.
Growth Remains a Priority
Despite this downsizing, Stripe remains committed to increasing its headcount by 10,000 by the end of the year, a 17% increase. According to a memo from Chief People Officer Rob McIntosh, the company is “not slowing down hiring.” This ambitious growth plan underscores Stripe’s confidence in its future prospects.
A Memorable Mistake
In an unfortunate error, a cartoon image of a duck with the text “US-Non-California Duck” was accidentally attached to emails sent to some of the laid-off employees. To make matters worse, some of these emails contained incorrect termination dates. McIntosh promptly sent a follow-up email apologizing for the “notification error” and any confusion it may have caused.
A History of Adaptation
This is not the first time Stripe has made significant layoffs. In 2022, the company cut around 1,100 jobs, or 14% of its workforce, as part of a broader industry trend to focus on profits over growth. More recently, Stripe made a few dozen layoffs in its recruiting department in 2023.
Valuation Volatility
Stripe’s valuation has experienced significant fluctuations, peaking at $95 billion in 2021 before dropping to $50 billion in 2023. However, the company reportedly rebounded to $70 billion last year following a secondary share sale.
Crypto Ambitions
In October, Stripe acquired crypto startup Bridge Network for $1.1 billion, demonstrating its commitment to making digital currency transactions easier for businesses. This strategic move highlights Stripe’s ambition to stay at the forefront of the payments industry.
Private but Powerful
Founded by brothers Patrick and John Collison in 2010, Stripe has deliberately avoided going public, with no indication of an IPO on the horizon. Despite this, the company has achieved remarkable success, with total payment volume surpassing $1 trillion in 2023.
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