Posted on August 05, 2022
Brex, which provides credit cards to other startups, announced Friday that it laid off 62 employees (15%). Brex said it was “restructuring the company to prioritize building over growing over the next year” due to the economic fallout from the coronavirus pandemic.
The company’s customers are predominantly other startups. As startups reduce their spending or go out of business, Brex makes less money from the interchange fees on its credit card product.
Brex is providing laid-off employees with 8 weeks of severance pay and health insurance through the end of 2020. The company is also waiving its 1-year equity cliff and extending the exercise period on vested stock options. Employees will be allowed to keep their company-issued computer.
See link below ???? for an opt-in spreadsheet of employees laid off. 8 individuals were listed as of early Monday morning, but more may be added over time.
https://discord.gg/GUPad7ETad