Company was burning $17m per month with less than $300m in revenue... while growing at a slower rate than ramp.com . simply unsustainable.
Brex Layoffs
11–20 of 161 posts
Re: Brex Layoffs
#12It's really disappointing to see the trajectory that Brex is on. I was extremely enthusiastic about their product, they had the best business banking/credit/expense tracking in the industry. I was a very happy customer, until they decided they would only chase SV startup unicorns as their customers, and terminated my account. Brex is very much a cautionary tale for other startups.
Re: Brex Layoffs
#13Interesting that the CFO and CTO also got the boot, but the positions weren’t eliminated. Is this a power grab? Or am I misreading?
It's not clear to me how you would have a company of this size without a CTO or CFO. I'm interested in why your expectation is that the roles themselves would be eliminated, versus bringing in people who might perform better?
Re: Brex Layoffs
#14Kind of saw that coming. The salaries at Brex were insane.
Higher than FAANG? Or whatever is the acronym today.
Re: Brex Layoffs
#15Interesting that the CFO and CTO also got the boot, but the positions weren’t eliminated. Is this a power grab? Or am I misreading?
COO and CTO
Re: Brex Layoffs
#16I wonder what the revenue of their customers looks like. They have to have a ton of revenue from other startups that themselves are in tenuous financial positions.
From the employee's perspective, it definitely sucks though. I went through a layoff this year and it took me a lot longer than I anticipated to get another job.
Re: Brex Layoffs
#17I like that they shared publicly the severance package (I missed that in a company before, the severance package was only available to the ones laid off, and you wouldn't even know if you got the same as your colleagues). And the package itself seems alright too (and sensible, for example: the laid off can keep their laptops. What would company do with almost 300 extra laptops?). Time of the lay off also not too bad…
I've been on both sides of the layoff discussions all too many times over the years. Even at the most disorganized or chaotic places, I've never seen the severance packages be anything other than a set formula.
That formula might consider location, level, tenure, and other relevant factors, but I don't think I've ever seen a case where it was "I like Alice more than Bob, so Alice gets more..."
Re: Brex Layoffs
#18It's really disappointing to see the trajectory that Brex is on. I was extremely enthusiastic about their product, they had the best business banking/credit/expense tracking in the industry. I was a very happy customer, until they decided they would only chase SV startup unicorns as their customers, and terminated my account. Brex is very much a cautionary tale for other startups.
They lied (or did not clearly inform their sales people) about their AWS credit promotion a few years ago which really annoyed me when they were trying to sell us. Went back to the safe embrace of SVB but I guess that didn't really play out well. As a startup I desperately want to see more credit card companies willing to offer cards to founders without ridiculous personal guarantees, so I hope they figure it out.
Re: Brex Layoffs
#19Company was burning $17m per month with less than $300m in revenue... while growing at a slower rate than ramp.com . simply unsustainable.
What am I not understanding about your comment, 300m is 25m per month, so that sounds very profitable?
Re: Brex Layoffs
#20> increasing in-person collaboration in our hubs, and concentrating the time zones in which we operate.
> With our focus on financial software and high-quality growth, we grew gross profit by 75%+ last year. While we're proud of those accomplishments, we still have a way to go to ensure high-velocity growth and profitability for years to come