Inside story of Brex layoffs after $150 million raise - Business Insider

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The inside story of how $3 billion Brex went from raising $150 million to slashing staff in just 10 days. Here are the execs who are out, and what's next for the fintech.

— that had left a bad taste in Wall Street's mouth for high-profile startups had started to subside.

The start of the year also brought turnover. After quadrupling headcount in 2019, new hires began to plateau and exits increased. Incoming classes of new employees, which at times had been as large as 25, had diminished to nearly half that, according to a source. In an effort to keep track of departing colleagues, employees took to tracking deactivations on Slack, sources said.By April, in the midst of the coronavirus pandemic, the strain of running a company that generates revenue from others spending was finally beginning to show. In a response to the worsening economy, Brex cut credit limits for customers. The directive was to focus on startups, the source said, but even that was done with a degree of caution.

Internally, a similar message was shared. Brex had plenty of cash on hand to weather the storm, executives consistently told employees at meetings, and there were no plans for cuts. The narrative finally changed for Brex on May 29th with the news of the layoffs. There was at least one bit of news that did not make it into the blog. Franceschi's mentioned Paul-Henri Ferrand, Brex's recently hired chief operating officer, would no longer handle the go-to-market organization, the group tasked in part with understanding new potential sets of customers and how best to approach them.

 

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