Brex founders Pedro Franceschi and Henrique Dubugras wrote in a blog post published yesterday that 62 people would be let go. The corporate credit cards for startups company will be prioritizing building overgrowing this next year.
“Three months in, it’s clear that the impact of COVID-19 won’t be short-lived. We know that the pace of growth won’t be what we expected for the foreseeable future,” the CEOs wrote. “This unique situation created the space for us to think about the future of Brex, and how we could use this time to accelerate our mission — to reimagine financial systems so every growing company can realize their full potential.”
The layoffs are a bit surprising, given that the company announced just last week it raised $150 million.
Brex will be taking another look at investments that don’t make sense, and some teams will be reduced, along with changing roles and some people being asked to switch teams.
Brex said it would be using the money to invest in engineering, product, and design. It also planned to “use a combination of organic efforts as well as small acquisitions to supplement its hiring and product development efforts.”