SAN FRANCISCO (KRON) — Amid reports that Elon Musk plans to lay off roughly half of Twitter’s workforce, another Bay Area tech company has announced it to will be laying off staff on Thursday. Stripe, a payment technology company with dual headquarters in South San Francisco and Dublin, Ireland, announced it would begin layoffs for 14% of its staff in a post on its website.
“Today we’re announcing the hardest change we have had to make at Stripe to date. We’re reducing the size of our team by around 14% and saying goodbye to many talented Stripes in the process. If you are among those impacted, you will receive a notification email within the next 15 minutes,” read the post in part.
Stripe has around 8,000 employees so the layoffs look to leave about 1,100 workers jobless heading into the holiday season. Beyond the email notifications that have apparently already started going out, the company said it would be setting up a “live, 1-1 conversation between each departing employee and a Stripe manager over the course of the next day.”
“If you are in an impacted group, look out for a calendar invitation,” the post advised.
According to the post, which was co-authored by Stripe CEO Patrick Collison, Stripe “overhired” in the midst of the pandemic as the world “rotated overnight towards e-commerce” and is now facing “stubborn inflation, energy shocks, higher interest rates, reduced investment budgets, and sparser startup funding.
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Departing employees will receive a severance package that, according to the post, includes 14 weeks of pay, annual bonuses, unused PTO and the equivalent of six months of health care payments.
Despite the bad news, the post ended on something of an optimistic note for the company.
“While the changes are painful, we feel good about the prospects for innovative business and about Stripe’s position in the internet economy,” it read. “The data we see is consistent with this encouraging picture: we signed a remarkable 75% more new customers in Q2 2022 than Q3 2021.”
As a matter of fact, just today Lyft announced it is cutting 13% of its workforce, and there are reports cuts are coming tomorrow to Twitter.