The Collison Brothers’ Stripe is shedding about 1,000 jobs worldwide, telling employees the company has “hired too much for the world we’re in” as inflation shakes the post-pandemic recovery.
The planned 14 percent staff reduction will bring the total number of employees down to 7,000 – about the same number as in February this year. The company was on a major hiring frenzy, including in Dublin, where it had planned to hire hundreds of people. While the hundreds of people employed in Stripe’s Irish offices are relatively small both here and within the company, the move comes as a blow given the high quality of the jobs based here and the group’s “Irish-American” status .
The job cuts and a cost-cutting program were announced to employees in a memo from CEO Patrick Collison, published on the payments group’s website.
The note announced generous severance terms and Patrick Collison said he and his brother and co-founder John accept full responsibility for the decisions that led to the job loss.
They are “far too optimistic about the near-term growth of the internet economy in 2022 and 2023,” underestimated the likelihood and impact of a broader slowdown, and increased operational costs too quickly, he said.
“Today we’re announcing the most difficult change we’ve had to make to Stripe. We’re reducing the size of our team by about 14 percent, saying goodbye to many talented Stripes. If you are one of those affected, you will receive a notification email within the next 15 minutes. For those of you who are leaving, we deeply regret this step and John and I are fully responsible for the decisions leading up to it,” he wrote.
In addition to the downsizing, Stripe said it will keep all other sources of costs firmly in check.
The news comes as rising interest rates, inflation and the global uncertainties hitting the world economy have caused a so-called “tech wreck” across the digital economy, shattering valuations for publicly traded companies such as Facebook owner Meta and digital finance firm Klarna as well for unlisted companies have been driven up by companies like Stripe, which make investments more expensive and prioritize cash retention.
In his memo to employees, John Collison said, “We believe 2022 will mark the beginning of a different economic climate.”
The company must now adjust the pace of its investments to the realities around i, he said.
“Today that means building differently for leaner times.”
https://www.independent.ie/business/stripe-to-cut-jobs-and-costs-in-major-shift-to-build-differently-for-leaner-times-42116243.html Stripe to cut jobs and costs to ‘build differently for leaner times’