US fintech Brex to axe 20% of workforce
US-based expense management platform Brex has announced that it will axe 282 positions – around 20% of its total headcount – in its latest round of job cuts as part of a company restructure.
Brex axes 282 jobs in organisational restructure
Issuing a statement to the company’s workforce this week, Brex founder and co-CEO Pedro Franceschi explains that the cuts are a result of the organisation growing too quickly, “making it harder to move at the speed we once did”.
“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,” Franceschi’s statement reads, confirming the “flattening” of its organisational structure.
As part of the changes, Brex’s chief operating officer (COO) Michael Tannenbaum will transition to the role of board member, while its SVP of global operations, Camilla Morais, will serve as Tannenbaum’s replacement.
Elsewhere, the platform’s chief technology officer (CTO) Cosmin Nicolaescu is due to move into an advisory role this summer, while James Reggio, its engineering director of AI products, will take up the role of VP of engineering.
For Brex, a corporate card start-up turned AI-powered spend and expense management platform valued at over $12 billion, the announcement marks the second round of layoffs it has endured over the last 18 months.
Franceschi previously announced in October 2022 that it would chop 11% of its workforce – then 136 employees – as a result of macroeconomic headwinds and its renewed focus on serving early-stage start-ups and scaled companies.
This move came after the platform confirmed in June 2022 that it would cease servicing “traditional” small businesses which did not align with its “core customer base”.
