Brex, last valued at $2.6 billion, is restructuring its credit card for startups company and cut 62 team member, the co-founders Pedro Franceschi and Henrique Dubugras said in a post.
” Today we’re restructuring the business to better align our concerns with this new truth, while simultaneously accelerating our item vision. With that, I have some really unfortunate news to share. 62 people will be leaving Brex today,” the post checks out.
The cuts come as Brex’s customer base itself is having a hard time to stay afloat in the middle of COVID-19: high-growth startups. The trickle-down to Brex’s core organisation, which depends upon its consumers investing cash, was therefore anticipated.
Brex has already cut some client credit line to reduce some of the exposure danger, The Information reported, and Dubugras confirmed. Clients state the credit line cuts came without warning or notice.
Furthermore, the business, released in Brazil and graduated from Y Combinator, raised $150 million just recently.
When TechCrunch talked with Dubugras about the most recent fundraise, the co-founder stated the capital was offensive, instead of defensive.
” I’m glad this round came together, but if it hadn’t, we would’ve been great,” he said recently. “The capital is so we can play offensive while everyone else plays defensive.”
In the post, the co-founders composed to former staffers.
” Please continue dreaming big and do not lose the aspiration that attracted you to Brex.
Those laid off will be offered with eight weeks of severance, their computer and devices, and Brex will commit a part of its recruiting group to help find new chances for ex-staffers. Furthermore, Brex is making changes to the equity cliff and has actually extended health care advantages through completion of 2020.
Brex has actually collected $465 million in venture capital financing to date.