Brex axes 20% of workforce in tough decision.

TLDR:

• Fintech giant Brex, valued at $12.3 billion, is laying off 20% of its staff.
• The layoffs come after a report revealed Brex incurred an average monthly cash burn of approximately $17 million in Q4 2023.

Fintech startup Brex, valued at $12.3 billion, is laying off 20% of its staff, according to internal sources. The company held a meeting to announce the cuts, which reportedly were expected due to rumors among engineering managers. Cosmin Nicolaescu, the CTO of Brex, will also be leaving his position and transitioning to an advisor role. This is not the first time Brex has laid off employees—the company made similar cuts in October 2022 and June 2020.

The layoffs come after a report in The Information revealed that Brex had an average monthly cash burn of $17 million in Q4 2023. While this represents a reduction from the previous quarter, where the average cash burn was $22 million per month, Brex still has a monthly average of $200 million, indicating a long runway of cash. Affected employees will receive severance packages.

Key takeaways:

• Brex, a fintech giant valued at $12.3 billion, is laying off 20% of its staff.
• The layoffs come after a report revealed Brex has a monthly cash burn rate of $17 million.
• The company has a cash runway of four years.
• Previous layoffs occurred in October 2022 and June 2020.