Stripe, a global fintech company, and the Bay Area’s second most valuable start-up, announced laying off over 300 employees this Monday. The news came out as a shocker to those impacted. A leaked memo from an insider apparently announced the layoffs. The company apparently wants to hire the right people for the right job. However, the lamenting employees have different things to say. The San Francisco-based company is going to let go of around 300 employees. If you wish to know exactly who it will impact, this article is for you. It brings you all the details about the Stripe layoffs and the possibility of future hiring.
Who Will The Stripe Layoffs Affect?
The Stripe layoffs are going to affect a total of 300 employees. These layoffs will majorly impact those employees who are working in the departments of engineering, product, and operations. An organizational review apparently resulted in these layoffs. These layoffs will help the company align its operations with the rapidly changing needs of the company as well as streamline them. However, layoffs can never result in happiness among the employees. The impacted employees are currently grieving the loss of jobs and their source of earnings.
What The Chief People Officer Rob McIntosh Had To Say?
The Chief People Officer of Stripe, Rob McIntosh, confirmed the news that the company is laying off over 300 employees in his official statement. In his statement, Rob mentioned that the cuts were happening because it became clear that the company needed several team-level changes. It is also to ensure that the organization has the right people in the right roles and locations for the successful execution of its plans.
Rob also explained how the company officials were asked to pull these decisions forward to all happen at once. He also acknowledged that the company’s confidence in the layoffs being the best decision doesn’t make it any easier for those impacted. He accepted that it would be tough for those leaving as well as those losing valued teammates.
Layoff History Of The Global Fintech Company
This is not the first time Stripe has laid off a significant number of employees in the name of organizational changes. The company laid off more than 1000 employees when Patrick Collison was in the CEO position in 2022. This was around 14% of the total workforce the company had at that time. The reason for the layoffs at that time was changes in the economic climate and the threat of an upcoming recession. The company had a workforce of around 8000 employees working in various departments before the recent layoffs were announced,
What Are The Possibilities Of Future Hirings?
According to Chief People Officer Rob McIntosh, despite the layoffs, the hiring of the company will not slow down. In fact, the company is planning to increase the total workforce by taking around 17% more employees on board. This means that the total headcount of the company which was around 8000 before the layoffs will soon turn 10000. Hence, it is clear that the layoff announcement will not impact those who are planning to apply for jobs in the global fintech company. The hiring will continue in full swing as the company is actually planning to hire the right people for the right jobs.
What Do The Impacted Employees Think About The Layoffs?
There were no positive reactions from the 300 employees who were impacted. The company is famous for its high pay levels even though its total revenue per employee is less than its competitors. This attracts a lot of new employees making them join the organization in hopes of high pay. However, the pay levels in Stripe are seeing a downward trend. The pay level of employees was $940.7k dropped to $728k in 2023. This is more than a 14% drop in the span of two years. The impacted employees believe that the layoffs addressed this situation. No matter what the reason may be, the layoffs have severely affected the employees who are lamenting the loss of their earning source.
How did The “Duck” Blunder Serve As Salt In The Wound?
Stripe reportedly sent PDFs to their employees apologizing for the layoffs with a picture of a yellow at the end. McIntosh accepted that some of the employees received the PDF with a duck labeled US-Non-California. He also apologized for the blunder and expressed his regret in an official email. He also informed that the corrected and full notifications are sent to the impacted employees.
However, this blunder only served as salt in the will of the already grieving employees. The duck was a straight-up insult to all the employees who were lamenting job loss after the layoffs. Patrick Collision’s address to the employees was highly appreciated when he announced the layoffs in 2022. They apologized and took full responsibility for the decision.
Workers offer dedication to the companies and layoffs are not something to joke about. Patrick Collison expressed regret in his message to the impacted employees. However, a blunder like sending a duck to the impacted employees only increased their resentment towards the higher authorities.
Conclusion
The Stripe layoffs were definitely sudden and poorly executed. The duck” blunder deeply hurt the sentiments of over 300 employees. It made them feel like a laughing stock. However, the announcements about new hires can prove to be an exciting opportunity for those who wish to apply for recruitment in the company. The company will increase its workforce by up to 10,000 employees. The time it will take to do so and the pay levels these new employees will have as an offer are yet to be seen.
