PriyaPatelTLDR:
- Brex, a US-based fintech company, is cutting 20% of its workforce, amounting to 282 employees, as part of a restructuring effort.
- The company aims to transform into a more agile and fast-moving organization.
US fintech firm Brex is the latest company to announce layoffs, with the company cutting 20% of its workforce, or 282 employees. This decision comes as part of a restructuring effort to transform Brex into a more agile and fast-moving company. 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. Franceschi pointed out that the company has grown too fast, and this rapid growth has slowed down its ability to operate efficiently. The decision to reevaluate the company’s structure was made to streamline operations and enhance its speed. To support the affected employees, Brex is providing eight weeks of severance pay, along with an additional two weeks of pay for each year of service. The company is also offering outplacement support to assist with job searches.
This is not the first time Brex has made adjustments to its workforce. In 2022, the company laid off 136 employees as part of an earlier restructuring effort. The layoffs affected various departments within the company. The recent layoffs at Brex are indicative of the ongoing trend of layoffs in the tech and startup industry. Many tech and startup workers have lost their jobs in 2023, and the trend seems to be continuing into 2024. However, the company’s decision to restructure and become more agile and fast-moving may be a positive step for the company’s future success.
