Stripe Layoffs: 300 Employees Affected, Hiring Plans for 2025 Remain

Stripe Announces Workforce Reduction

Stripe, a leading financial technology company, is implementing a reduction in its workforce, impacting approximately 300 employees. This information was revealed through a leaked internal memo, as reported by Business Insider on Tuesday.

Impacted Departments

The positions eliminated are primarily concentrated within the product development, engineering, and operational divisions of the company. Despite these cuts, Stripe remains committed to expansion.

Rob McIntosh, Stripe’s Chief People Officer, indicated the company still plans to increase its total employee count by 17% before the year concludes.

Current and Projected Headcount

This growth strategy aims to bring the total number of employees to around 10,000. Based on this projection, Stripe currently employs approximately 8,550 individuals.

Rationale for the Restructuring

According to McIntosh, the decision to reduce staff stems from a need for strategic realignment. It was determined that certain team-level adjustments were necessary.

These changes are intended to ensure Stripe has the optimal personnel, positioned effectively both in terms of roles and geographic locations, to successfully execute its strategic objectives.

Previous Workforce Adjustments

This is not the first instance of workforce reductions at Stripe. In November 2022, the company announced layoffs affecting 14% of its workforce.

This prior action impacted roughly 1,120 employees from a then-total workforce of 8,000.

Funding and IPO Status

While an initial public offering (IPO) has been anticipated for some time, Stripe has opted to continue securing funding through alternative means.

The company has also been conducting tender offers to provide liquidity options for its employees.

As of last July, Stripe’s valuation stood at $70 billion.

Stay Informed

For further updates and insights into the fintech industry, consider subscribing to TechCrunch Fintech here.

Tips and confidential information can be submitted via email to maryann@techcrunch.com or through Signal at 408.204.3036.

The TechCrunch team can also be reached at tips@techcrunch.com. Secure communication channels, including SecureDrop and encrypted messaging apps, are available here.