Payments company Stripe has announced plans to cut more than 1,000 staff from its workforce.
On Thursday, the company's boss Patrick Collison sent a note to employees notifying that it is axing around 14 per cent of its team.
The chief executive blamed the move on “stubborn inflation”, energy price increases, higher interest rates, reduced investment budgets and “sparser start-up funding”.
Stripe experienced higher growth rates during the pandemic due to the shift towards e-commerce. This pushed the business towards a new business operating model, where it saw revenue and payment volume more than triple.
But the business warned that it needs to approach things differently during "leaner times".
Collison added that while the business is "well-positioned to weather harsh circumstances" it needs to "match the pace of [its] investments" with reality.
“On Tuesday, a former Treasury Secretary said that the US faces “as complex a set of macroeconomic challenges as at any time in 75 years”, and many parts of the developed world appear to be headed for recession,” wrote the chief exec. “We think that 2022 represents the beginning of a different economic climate.”
Stripe said that it had made several mistakes, including being "much too optimistic" about the internet economy's near-term growth in 2022 and 2023, and said it had underestimated the impact of a broader slowdown.
It also said that it had grown operating costs too quickly.
The news follows Open Banking platform TrueLayer’s announcement in September that it would reduce its workforce 10 per cent.
Buy Now, Pay Later FinTech Klarna also said it would drop 10 per cent of roles earlier this year.
In May, Klarna revealed it would be laying off 700 staff, which it told employees in a pre-recorded video message.
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