Priya Patel
TLDR: Silicon Valley fintech company, Brex, has announced that it will be laying off 20% of its workforce, equivalent to more than 200 employees. Despite being a decacorn with a valuation over $10 billion, Brex has shown that no company is immune to job losses. The company aims to be the credit card company for startups and offers credit cards as well as other services such as travel expense management. Brex had previously undergone a round of layoffs in late 2022. The layoffs in the fintech industry are not unique to Brex, as other well-funded companies such as Stripe and Plaid have also experienced job cuts.
The layoffs come as Brex shifts its focus to hiring talent outside of the US. The company has been recruiting in Latin America, Israel, and Canada, primarily in software engineering roles. This change in strategy is in contrast to Brex’s previous approach of enticing employees from larger tech companies with financial incentives. The median annual salary for a software developer in the US is much higher than in countries such as Brazil, which makes outsourcing talent an attractive option for American tech companies.
Brex is currently unprofitable, losing $16 million a month, according to an employee. The company has not yet released a comment on the layoffs.
