Stripe laying off around 14% of workforce

Post by topicseed » Thu, Nov 03, 2022, 5:45 PM UTC

ohmanjjj wrote: post #85

tempsy wrote: post #36

I feel bad for employees that have waited a decade to cash out. No reason why Stripe couldn’t have gone public in 2020-2021 at a huge valuation but from past interviews it sounds like the decision to remain private was just a founder preference thing because “focus” or something. Now the IPO market is completely frozen and its valuation is likely cut in half from peak, at least.

They couldn’t IPO. Stripe is a bubble. They don’t want their financials under a microscope.

Post by spamizbad » Thu, Nov 03, 2022, 5:47 PM UTC

tomnipotent wrote: post #234

spamizbad wrote: post #144

Earlier quoted context omitted.

Stripe’s reach as a processor probably isn’t broad enough to see those kinds of trends. Their processing fees are quite high so there’s huge industry sectors that will just never touch them.

Stripe processes in the area of $350-400bln annually, which is equivalent to about 1/10th the GDP of the U.K. That's absolutely enough volume to see macro trends as it relates the classes of merchants they support.

Post by pc86 » Thu, Nov 03, 2022, 5:49 PM UTC

dmurdoch wrote: post #466

TorKlingberg wrote: post #418

Earlier quoted context omitted.

> Sucks because my manager was only told this morning As a manager I find their really curious. I guess they were trying to avoid leaks. I wonder how they chose who to lay off. Most recent performance rating? Next level managers impression?

I work at a company that did layoffs recently as well, about double this size. Our managers also had no idea until day of. The entire day was spent watching co workers google calendars and slack accounts. Once they got a meeting booked with HR, their meeting titles all turned into "busy", so we would know who is getting cut and who wasn't. It was a brutal day. In our case I don't think they were picking people based…

Post by ISL » Thu, Nov 03, 2022, 5:51 PM UTC

fredophile wrote: post #438

ISL wrote: post #249

Earlier quoted context omitted.

The 14 weeks of severance alone is probably worth ~$60 M [1] Scrounging on the web suggests that Stripe may be EBITDA-profitable but not GAAP-profitable. $60M (perhaps double that with all the other benefits laid out here) is easily enough to delay GAAP profitability by a quarter or two. That may not seem like much, but it has a huge impact on investor sentiment. [1] 0.14 8000 200000*14/52

How does this delay GAAP profitability? They paid out 3.5 months severance and their full 2022 bonuses. If they hadn't laid these people off then in the next 3 months (1 quarter) they would have paid them 3 months salary and their full 2022 bonuses.

Post by Knufferlbert » Thu, Nov 03, 2022, 5:51 PM UTC

mandeepj wrote: post #462

Quoted post unavailable.