Stripe, the South San Francisco-based company known for its online and in-person payment processing services, has announced a round of layoffs. The news was shared in an internal memo from Chief People Officer Rob McIntosh, which was later published by Business Insider and confirmed by Stripe spokesperson Casey Becker to SFGATE.
Workforce Changes Despite Strong Performance
Despite stating that the company’s “business performance continues to be strong,” McIntosh revealed plans to increase the workforce by 17% to reach 10,000 employees by the end of the year. However, before that expansion takes place, several hundred employees are being laid off. By Tuesday, affected workers had already started sharing their experiences on LinkedIn.
McIntosh explained that these layoffs were necessary to ensure “the right people are in the right roles and locations” to effectively execute the company’s strategic plans. Instead of implementing cuts gradually, Stripe leadership opted to consolidate them into a single round of layoffs. According to the memo, the job reductions primarily affect employees in product, engineering, and operations teams. McIntosh expressed appreciation for the departing staff, acknowledging that while the decision was strategically necessary, it was still challenging for those affected.
Financial Struggles and Valuation Fluctuations
As a privately held company, much of Stripe’s financial data remains undisclosed. However, the company has experienced a volatile period since 2022 when it let go of over 1,000 employees, with CEO Patrick Collison attributing those cuts to economic uncertainties and recession concerns. Additionally, Stripe has adjusted its valuation multiple times, reducing the value of employee shares in the process.
In 2023, Stripe saw a rebound, increasing its valuation to approximately $70 billion, according to Bloomberg. While this figure falls short of its 2021 peak valuation of $95 billion, it remains one of the most valuable privately held tech startups in the U.S., ranking behind only SpaceX and OpenAI.
Headquarters Relocation and Office Expansion
Originally headquartered in San Francisco, Stripe relocated its main office to South San Francisco in 2021. The move followed the company’s opposition to a 2018 city proposition that imposed additional taxes on businesses to address homelessness. Stripe also maintains a second headquarters in Ireland, the home country of its co-founders Patrick and John Collison, and operates offices in major cities such as London, Paris, and Tokyo.
Legal Compliance and Employee Rights
As of Tuesday morning, the California Employment Development Department had yet to receive a WARN notice from Stripe, which is typically required under the Worker Adjustment and Retraining Notification Act when a company lays off 50 or more employees within the state.
Contact Information
For those working at Stripe or other Bay Area tech firms who wish to share their experiences, tech reporter Stephen Council can be contacted securely via email at stephen.council@sfgate.com or on Signal
