A US company now announces unexpected layoffs, representing 20% of its workforce, according to a business email.
Brex cut 282 employees, roughly 20% of its workforce, on Tuesday, according to an email co-CEO and founder Pedro Franceschi sent to employees and posted on the company blog.
The cuts are part of an effort to reduce layers of management and become profitable, Franceschi said in the post.
As part of the management shuffle, Senior Vice President Camilla Morais will also replace Michael Tannenbaum as chief operating officer, while Tannenbaum will take a seat on the board.
Chief Technology Officer Cosmin Nicolaescu will transition to an advisory role. Director James Reggio will be promoted to vice president of engineering and report directly to Franceschi, the post said.
“Looking inward, I realized we grew our org too quickly,” Franceschi said in the message.
He claimed the cuts and restructuring will put the company “on a clear path towards profitability and independence.”
Tuesday’s restructuring echoes cuts from two years ago, when the company trimmed 136 employees, or 11% of its workforce at the time, reports BankingDive.
Then-Chief People Officer Angela Crossman anticipated further cuts across the industry in 2023 as fintech startups pushed for profitability, she said in an interview at that time.
The cuts come despite Brex taking on billions of dollars in deposits in the wake of the collapse of Silicon Valley Bank last year, as reported by The Wall Street Journal.
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Other Economy and Layoff News Today
A massive tech company now says more layoffs are coming in order to reach “ambitious goals” in areas such as artificial intelligence.
Google CEO Sundar Pichai told employees in a memo Wednesday that more job cuts are coming this year.
“The reality is that to create the capacity for this investment, we have to make tough choices,” Pichai wrote.
In a memo titled “2024 priorities and the year ahead” that staffers received Wednesday evening, Pichai said, “we have ambitious goals and will be investing in our big priorities this year.”
In the memo, which was obtained by CNBC, Pichai said company leadership is gearing up to share its AI goals for the year this week and will publish its 2024 OKRs (objectives and key results).
“The reality is that to create the capacity for this investment, we have to make tough choices,” Pichai wrote.
For some teams that means eliminating roles, which includes “removing layers to simplify execution and drive velocity,” he added.
Pichai’s latest messaging signals continued cost cuts at Google following numerous rounds of layoffs that began in January 2023, when the company announced it was eliminating 12,000 jobs, or roughly 6% of the full-time workforce, CNBC reports.
The company also cut back on some perks as well as laptops and equipment.
Pichai said in Wednesday’s memo that, “to be upfront, some teams will continue to make resource allocation decisions.”
He said layoffs won’t be at the scale of last year’s reductions and “will not touch every team.”
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