SAN FRANCISCO—On Friday, May 29, San Francisco based company Brex announced that they had laid off 62 employees. With 449 employees total, this layoff will get rid of approximately 13.8% of Brex’s workforce. Brex is a financial technology company focused on building credit cards for growing startups.
Brex was founded in 2017 by two Brazilian engineers named Henrique Dubugras and Pedro Franceschi. The company is currently valued at $2.6 billion and has raised millions of dollars in funding in the three years since it was founded.
In the layoff announcement, Dubugras and Franceshi say that they are restructuring the company in light of the COVID-19 pandemic. They write, “Three months in, it’s clear that the impact of COVID-19 won’t be short-lived.” Dubugras and Franceshi also mention that some teams will have to be reduced, roles changed, and they will have to revisit certain investments as a company.
According to Layoffs.fyi, a website created by San Francisco based entrepreneur Roger Lee that tracks startup layoffs during the pandemic, over 100 local startups have laid off 12,000 employees since March of this year.
In Brex’s announcement, the founders write about what they will do to assist the 62 employees who have been laid off. They will provide the employees with two months’ worth of severance pay, keeping those affected on the company’s health insurance for the rest of the year, dedicating a recruitment team to find those affected new job opportunities, and allowing the employees to keep any company equipment such as computers.
from Hacker News https://ift.tt/2ZVJxn2
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