Stripe cuts 300 employees in product, engineering, and ops, with ‘duck’ email

What’s going on at Stripe?

Stripe, the Irish-American payments technology company, has laid off 300 employees, representing approximately 3.5% of its workforce. The layoffs, confirmed by an internal memo obtained by Business Insider, were primarily concentrated in product, engineering, and operations teams.

Details on the layoffs

• Chief People Officer Rob McIntosh informed employees of the decision via email on Monday.
• The impacted staff have been notified and offered severance packages, including earned annual bonuses.
• Despite the cuts, Stripe plans to increase its headcount to approximately 10,000 employees by the end of 2025, reflecting a 17% year-over-year growth.

In the memo, McIntosh explained that leaders reviewed team structures to align with strategic goals for 2025, resulting in the decision to consolidate changes into one phase rather than rolling them out gradually.

Context and company position

The layoffs come amid broader workforce adjustments at Stripe over the past two years:

• In late 2022, Stripe reduced its workforce by more than 1,000 employees, or 14%, citing economic uncertainty.
• Mid-2023 saw additional cuts, primarily in the recruiting department, according to The Information.

Stripe remains the largest privately owned fintech company, with an estimated valuation of $65 billion. Co-founded by John and Patrick Collison in 2010, the company provides payment processing software to millions of businesses globally.

A communication error adds to the story

Adding a peculiar twist, Forbes reported that affected employees received an accidental PDF attachment featuring a cartoon duck labeled “US-Non-California Duck” alongside their layoff notices. Rob McIntosh apologized for the error, stating, “I regret any confusion it caused” and confirmed that corrected notifications were subsequently sent.

Impact on Canadian staff

It remains unclear if the workforce reduction at Stripe will affect Canadian employees. The company announced an expansion in Toronto in late 2024.

Next steps for Stripe employees

If you’ve been affected by the layoffs at Stripe, understanding your legal rights is crucial.

Non-unionized employees in Canada’s tech sector are entitled to severance pay based on a variety of factors, including their role, tenure, age, and ability to find similar work.

Here’s what you need to know:

• Compensation: Severance packages, which can be as much as 24 months’ pay, may include salary, bonuses, commissions, and other forms of compensation. Use our firm’s free Severance Pay Calculator to better understand your entitlements.
• Deadlines: You generally have up to two years from the date of your termination to review and negotiate severance offers.
• Action steps: Consult an employment lawyer at Samfiru Tumarkin LLP to ensure your severance package is fair and aligns with Canadian employment laws.

Many companies cutting jobs

Stripe isn’t the only major employer trimming its headcount as 2024 draws to a close.

Other big names, including Cargill, Vale, Windsor University, Rogers, General Motors, AMD, Visa, Meta, Nokia, and Deloitte, have also pulled out the axe.

SEE ALSO
• Salesforce to cut jobs at ‘Own’ following $2-billion acquisition
• Amazon Layoffs: Nearly 14,000 managers could be axed to cut costs
• Where are layoffs happening in Canada?
• Pocket Employment Lawyer: Real-time insights on your rights

Lost your job? Contact us

If you’re affected by the latest round of layoffs at Stripe, the experienced employment law team at Samfiru Tumarkin LLP can help.

Our lawyers in Ontario, Alberta, and British Columbia have helped tens of thousands of non-unionized individuals resolve their workplace issues.

Call us today at 1-855-821-5900 or request a consultation online.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is NOT specific to any one company and should NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.