Stripe axes 300 jobs in key departments

Despite this downsizing, the Stripe workforce is set to expand, with plans to reach 10,000 employees by the end of the year, reflecting a 17% increase

Stripe, the payments giant valued at approximately $70 billion, has announced the elimination of 300 positions, impacting 3.5% of its workforce. The latest Stripe layoffs primarily affect teams in product, engineering, and operations. Despite this downsizing, the Stripe workforce is set to expand, with plans to reach 10,000 employees by the end of the year, reflecting a 17% increase. According to Chief People Officer Rob McIntosh, the company is "not slowing down hiring."

Layoff communication missteps lead to apology

During the layoff notifications, an internal error caused some employees to receive incorrect termination dates via email. Adding to the confusion, an unrelated PDF featuring a cartoon duck labelled “US-Non-California Duck” was inadvertently attached to some communications. Rob McIntosh addressed the situation in a follow-up email, apologizing for the mistake and confirming that corrected notifications had been sent to all affected employees.

Also Read: Stripe cuts 28% of valuation

These workforce reductions come amid broader challenges in the tech industry. In 2022, Stripe cut 1,100 positions, accounting for 14% of its workforce. Earlier layoffs in 2023 targeted a small number of recruiting roles, including some at the Stripe India office in Bangalore.

Growth amid valuation fluctuations

Stripe’s valuation has experienced notable fluctuations, from a peak of $95 billion in 2021 to $50 billion in 2023, before rebounding to $70 billion following a secondary share sale. Despite these changes, Stripe remains focused on growth, reporting over $1 trillion in payment volume in 2023.

The company has also invested in innovation, acquiring crypto startup Bridge Network for $1.1 billion in October to enhance its capabilities in digital currency transactions. As the Stripe workforce evolves, the company continues to expand its global operations, including its presence in Bangalore and other key markets.

With its long-term growth plans intact, Stripe remains a key player in the payments industry, led by founders Patrick and John Collison, who continue to steer the company as a private enterprise.