Brex Layoffs: 20% of staff being cut, grew ‘too quickly’

Expense management startup Brex is eliminating approximately 20 per cent of its workforce, or 282 jobs.

What’s happening at Brex?

In a note to staff on Jan. 23, co-CEO Pedro Franceschi said the job cuts will help Brex become a “high-velocity company.”

“Looking inward, I realized we grew our [organization] too quickly, making it harder to move at the speed we once did,” Franceschi said.

“This year, we decided to take a hard look at our current structure, and reduce the number of layers between leaders and the actual work that affects customers.”

The reduction comes after The Information reported that Brex incurred an average monthly cash burn of approximately $17 million in the fourth quarter of 2023.

However, a spokesperson told TechCrunch the report’s findings were “inaccurate” — adding that the “reduction in force puts [the company] on a clear path towards profitability.”

Brex layoffs in Canada

It remains unclear if any Canadian employees are affected by the job cuts at Brex.

According to the company’s LinkedIn page, it has more than 250 workers in the country.

Severance offers for Brex employees

While Brex will provide laid-off workers with severance packages that include at least eight weeks of pay, Canadian workers who are let go could be owed as much as 24 months’ pay.

In Canada, non-unionized employees at the startup are entitled to a full severance package when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes non-unionized individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

The amount of compensation you are owed is calculated using a variety of factors, including age, length of service, position at the company, and your ability to find new work.

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what the Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

LEARN MORE
• Severance for provincially regulated employees
• Rights to severance for tech sector staff
• Severance packages during mass layoffs

Major tech layoffs continue

Brex isn’t the only tech company that is reducing its workforce in 2024.

Other notable employers, including Wayfair, Amazon, YouTube, Google, Instagram, BenchSci, Discord, Twitch, Unity, and Xerox, have also pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
• Firm launches $130M class action against Shopify for breach of contract
• SkyHive Layoffs: More than 30 employees cut, according to reports
• Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.