Adrian JohnsonTLDR: Fintech company Brex, valued at $12 billion, is laying off 282 employees, or 20% of its workforce. Many of those being let go are former hires from hedge funds. The layoffs reportedly came as a surprise to many employees, who were given just one hour to leave. Brex claims the layoffs are due to the company growing too quickly.
Fintech company Brex is laying off 20% of its workforce, or 282 employees, citing rapid growth as the reason for the cuts. Many of those being let go are former hires from hedge funds. Formerly valued at $12 billion, some experts estimate that Brex’s value has dropped to $800 million, a 93% decrease from its peak.
The layoffs at Brex reportedly came unexpectedly, leaving many employees with just one hour to leave. Former hires from hedge funds are among those being let go, including individuals from Balyasny and Cerebellum Capital. Juhan Song, a product marketer, expressed disappointment at the suddenness of the layoffs, while people and culture leader Tara Shelley felt shocked due to receiving positive feedback before the announcement.
While the layoffs at Brex may be a sign that the fintech sector is still experiencing some volatility and uncertainty, the company’s decision to let go of former hedge fund hires may also suggest a shift in hiring strategies for fintech firms. Brex’s focus on rapid growth may have led to a misalignment of skills and goals between the company and these specific hires. Additionally, the significant decrease in Brex’s valuation raises questions about the overall health and stability of the fintech sector.