Online payments giant Stripe is laying off roughly 14% of its staff, CEO Patrick Collison wrote in a memo to staff Thursday.
In the memo, Collison said the cuts were necessary amid rising inflation, fears of a looming recession, higher interest rates, energy shocks, tighter investment budgets and sparser startup funding. Taken together, these factors signal “that 2022 represents the beginning of a different economic climate,” he said.
Collison acknowledged the company’s leadership made “two very consequential mistakes” by misjudging how much the internet economy would grow in 2022 and 2023, and when it grew operating costs too quickly.
Technology companies have been announcing layoffs and hiring freezes while moving to cut costs amid a worsening economic outlook. Amazon, Google parent Alphabet and Facebook owner Meta have all taken steps to rein in expenses. Companies including Netflix, Spotify, Coinbase and Shopify have announced layoffs.