Brex Layoffs

A Message from Pedro

Right now, Brex Founder and co-CEO Pedro Franceschi despatched the next word to Brex staff:

Workforce,

Right now we’re restructuring Brex to develop into a high-velocity firm. Whereas our technique and mission stay the identical, we’re making some vital modifications as we speak that can improve the depth and high quality of our execution.

Sadly as a part of these modifications, 282 folks (roughly 20% of the corporate) will likely be leaving Brex as we speak. Henrique and I are answerable for the selections that led us right here, and seeing so many proficient of us undergo this expertise isn’t what you hope for as a founder. It’s extremely onerous to say goodbye, and we really feel so grateful for his or her contributions constructing Brex into what it’s now. We’re doing what we will do to ease the transition, and departing staff will obtain:

• 8 weeks of severance, with two further weeks of pay for every further 12 months of service.
• Waiver of the one-year fairness cliff for many who haven’t reached theirs but.
• Outplacement assist for job search help, and impacted folks will be capable to maintain their laptops to help with the transition.
• Backed continued well being protection for six months by way of COBRA, together with psychological well being assist.

I additionally wish to provide extra context on how we acquired to this determination. Since beginning Brex in 2017, we’ve had one purpose: deeply integrating fintech and software program right into a single platform that empowers groups to make higher monetary selections. We began as a company card, and in six years, turned the chief within the spend administration house. Right now we’re proud to serve 1 in each 3 startups within the US, tens of 1000’s of companies from public launch to world public corporations, and in 2023 alone, tons of of 1000’s of latest clients’ staff that at the moment are utilizing Brex to make higher monetary selections.

To proceed capturing the huge alternative forward, we’re hyper-focused on constructing a high-velocity product and development machine. Wanting inward, I spotted we grew our org too rapidly, making it tougher to maneuver on the pace we as soon as did. This 12 months, we determined to take a tough take a look at our present construction, and scale back the variety of layers between leaders and the precise work that impacts clients. This resulted in as we speak’s onerous determination. As well as, we’re additionally making the next modifications to how we run the corporate:

1. We’re flattening our org construction and lowering layers of administration. Our purpose is for leaders to function nearer to the metallic, much less siloed and extra functionally, targeted on few cross-company priorities. These modifications start with the management staff and cascade throughout the org:

a. Michael Tannenbaum is transitioning from COO to a Brex board member. Camilla Morais is being promoted to COO and can report on to me, along with our CFO Ben Gammell. Michael was our 2nd worker, and Brex wouldn’t exist with out him. I can’t wait to proceed working with Michael on our board.

b. Cosmin Nicolaescu is transitioning from CTO into an advisor function this summer season. James Reggio is being promoted to VP of Engineering and can report on to me, along with Matt Bango, our VP of Design. Cos performed a vital function constructing our engineering org and product for over 5 years, and I really feel so grateful for all his contributions to Brex.

2. We’re emphasizing long-term considering and possession over short-term positive factors in our comp construction. The chance forward of Brex is huge, and we wish everybody staying to have excessive conviction and monetary upside in our fairness.

3. We’re altering our working mannequin, anticipating leaders to operate at all levels transferring ahead, selling from inside, rising in-person collaboration in our hubs, and concentrating the time zones during which we function.

4. We’re increasing on the monetary enhancements from 2023. With our concentrate on monetary software program and high-quality development, we grew gross revenue by 75%+ final 12 months. Whereas we’re happy with these accomplishments, we nonetheless have a option to go to make sure high-velocity development and profitability for years to return. Mixed, these modifications allow us to get there and develop into money movement optimistic with the cash now we have within the financial institution.

I’ll host an All Fingers tomorrow to speak about how we’ll function transferring ahead. Whereas it’s extremely onerous to see so many proficient teammates depart, I’m optimistic about this new section of Brex: leaner, sooner, and nearer to clients.

This received’t be a simple change, nevertheless it’s a worthy one. Whereas we’ve grown to tons of of thousands and thousands of {dollars} in income in a brief span of time, Brex nonetheless serves lower than 1% of the US market, and over the subsequent few years, the chance forward of us stays large. Each single enterprise must handle spend, and that’s a lot greater than simply serving to them scale back prices. The purpose of any finance staff is to empower staff to make the perfect monetary selections that transfer their enterprise ahead. That’s exactly Brex’s mission and our proper to win.

We’ve a singular alternative over the subsequent 5-10 years, and these modifications will improve the depth and high quality of our execution, connecting us extra deeply to clients wants, and placing us on a transparent path in the direction of profitability and independence. I really feel so assured on this staff’s means to rise to the event and proceed constructing a generational firm.

Onwards,

Pedro