Fintech startup Brex lays off 20% of its staff

According to a company employee, an internal meeting was called for 11:30 a.m. EST and was held an hour later, when the job cuts were announced.

“We knew about this for about a week through rumors. Engineering people knew about it before anyone else,” the source said. Fortune.

Cosmin Nicolaescu, Brex’s technical director, will step down and take on an advisory role. Nicolaescu has been with Brex for just over five years. A Brex spokesperson made the connection the company’s latest blog post when asked to comment.

The startup, which manages finances for corporate clients, recently laid off 136 people, or 11% of its staff, in October 2022TechCrunch first reported, and Brex’s then-CFO left to join software startup Rippling. Before that, in June 2020, Brex fired 62 employees, or approximately 17% of its workforce.

“It’s similar to the layoffs last October. They announce half an hour before that there’s a meeting in half an hour, and then they do the layoffs. They send emails at the beginning of the meeting saying whether you’re being laid off or not,” the current employee added. “Slack accounts aren’t being immediately deactivated yet, which is different from last time.”

Affected employees will receive eight weeks of severance pay, plus two additional weeks of pay for each additional year of service, the company said.

The layoffs come after a report According to The Information, Brex recorded an average monthly cash burn of approximately $17 million in the fourth quarter of 2023. The report adds that Brex has reduced its cash burn from an average of $22 million per month in the fourth quarter of 2022. However, the latest monthly average still stands at $200 million per year. According to The Information, Brex currently has four years of cash flow.

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