Stripe Inc., the industry leading digital assets payment platform that received a $95 billion valuation in its most recent funding round, is reducing its workforce by 14%. The company provides payment support for cryptocurrency businesses as well as support for USDC stablecoin payments on Polygon.
Stripe has reportedly reduced its internal valuation by 28% months prior to the layoffs. Following the layoffs, the company will now have close to 7000 employees, about the same strength as it had in February.
The company blamed the macroeconomic conditions and drop in startup funding. Employees were informed of their loss via email. However, Patrick and John Collison, founder of the platform took responsibility. The announcement states:
“The world is now shifting again. We are facing stubborn inflation, energy shocks, higher interest rates, reduced investment budgets, and sparser startup funding. Our business is fundamentally well-positioned to weather harsh circumstances. However, we do need to match the pace of our investments with the realities around us. Doing right by our users and our shareholders (including you) means embracing reality as it is.”
The founders of Stripe explained that they have over-hired employees which increased operating costs too quickly. As a consequence, they stated, the company is “unable to deliver the experience that it hoped that those impacted would have at Stripe.”
This year, U.S. technology stocks have suffered a strict monetary policy and concerns about an impending recession which resulted in heavy loss of investor populace.
The news comes after other sizable layoffs in the fintech and crypto industries as both traditional and crypto asset prices declined due to turmoil in the global economy. Bitmex, a cryptocurrency exchange, reduced its workforce by 30% in recent days. In the past, businesses like Ignite, Crypto.com, Celsius Network, OpenSea, Robinhood, Gemini and Bitpanda also cut back on staff with NYDIG being the latest among all.