Stripe, a major online payment service, announced that it will dismiss more than 1,000 people, and there are also voices that evaluate support for dismissed employees
CEO Patrick Collison's email to Stripe employees
https://stripe.com/jp/newsroom/news/ceo-patrick-collisons-email-to-stripe-employees
Stripe Cutting Headcount by 14% as It Readies for 'Leaner Times' - Bloomberg
https://www.bloomberg.com/news/articles/2022-11-03/stripe-cutting-headcount-by-14-as-it-readies-for-leaner-times
Stripe cuts 14% of its workforce, CEO says they 'overhired for the world we're in' | TechCrunch
https://techcrunch.com/2022/11/03/stripe-cuts-14-of-its-workforce-ceo-says-they-overhired-for-the-world-were-in/
Stripe is an online payment service company based in California, USA and Dublin, Ireland, founded in 2010 by brothers Patrick Collison and John Collison from Ireland. Since the outbreak of the new coronavirus infection (COVID-19) pandemic in 2020, Stripe's revenue has tripled as the world has shifted to online shopping. He said.
However, CEO Patrick said in an email to employees dated November 3, 2022, ``Today we are announcing the most difficult change we have ever had to make at Stripe. We will shrink about 14% and say goodbye to many of our talented employees in the process.If you are impacted, you will receive a notification email within 15 minutes.”“To affected employees: this I am very sorry that we have taken action, and I and John take full responsibility for the decisions that led to this outcome.' was reported to be reduced to about 7,000.
The email points out that the world is facing various problems such as severe inflation, energy shocks, rising interest rates, cuts in investment budgets, and lack of funds for startups, and that the economy is headed for recession. Since Stripe provides services that form the basis of corporate activities, it is not a service that is easy to terminate the contract due to cost reduction, but it is necessary to reduce costs in order to adapt to the situation in the world, Patrick said. .
In July 2022, it was reported that Stripe had reduced its valuation from $95 billion (about 14 trillion yen) to about $74 billion (about 10.9 trillion yen).
US Payment Stripe, 28% lower corporate valuation of its own US report: Nihon Keizai Shimbun
https://www.nikkei.com/article/DGXZQOGN14F1U0U2A710C2000000/
Stripe says it will provide the following support to dismissed employees:
Severance pay : All retiring employees will be paid 14 weeks of severance pay, with longer-term employees paying more.
・Bonuses : We will pay annual bonuses for 2022 to all retiring employees, regardless of their retirement date.
・Paid leave : Even employees living in areas where paid leave is not legally mandated will be paid a salary equivalent to unused paid leave.
・Medical insurance : We will pay cash equivalent to six months of current medical insurance premiums or medical expenses.
Vesting of Restricted Stock Units: Employees who have the right to acquire restricted stock units will be granted shares without waiting for the February 2023 transfer date.
・Career support : The company will do its best to help dismissed employees find new employment at other companies. It will also offer significant Stripe discounts to ex-employees starting new businesses.
・Immigration support : For those who have obtained a work visa as a Stripe employee, we offer a wide range of dedicated support windows, and we will help you transition to a non-employment visa as much as possible.
In addition to this, Stripe will give ex-employees a dedicated email address called 'alumni.stripe.com', and on the 4th, each employee and Stripe manager will have an opportunity to talk one-on-one. is. 'Most importantly, while this is not the breakup we wanted when we were hired, we as ex-colleagues care about you and everything you've done for Stripe,' Patrick said. I want you to know that I am grateful for you.'
Regarding the layoffs, Patrick said management was 'too optimistic about the growth of the Internet economy in 2022 and 2023 and underestimated the potential and impact of a slowdown,' and that 'operational costs were increasing too quickly.' I admit that I made a mistake. In addition, dismissals are not evenly distributed across all departments. For example, many employees in recruiting departments will be dismissed due to the reduction in the scale of hiring next year. ... apparently ...
In addition, on the social news site Hacker News, comments that evaluated the treatment of Stripe 's dismissed employees were well received .
* Severance pay. We will pay 14 weeks of severance for all departing employees, ... | Hacker News
https://news.ycombinator.com/item?id=33456443
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