Financial services startup Brex is cutting 11% of its workforce several months after it pivoted away from serving small businesses to refocus on serving other startups.
The company told employees in an email on Tuesday that the cuts would impact 136 employees. It subsequently posted the email on its blog. TechCrunch first reported the news.
In the blog post, co-CEO Pedro Franceschi wrote that the decision was made so the company could work toward "increasing focus on our strategy, and adjusting to the new macro environment" of uncertainty.
"While we’re fortunate to be in a strong financial position with many years of runway, the new macro environment is materially different from the first five years of Brex and warrants a new level of focus and financial discipline," Franceshci wrote, and continued that "Brex’s financial strength, and this change will put us on a path to sustainable profitability over the next few years."
After the cuts, Brex will have around 1,150 employees, according to TechCrunch.
The startup was founded by Franceschi and co-CEO Henrique Dubugras in 2017 as a credit card provider catering to venture-backed startups and expanded to include more traditional businesses until this past June when it dropped thousands of small businesses to focus on startups, mid-market and enterprise corporations.
The company also recently shed its physical office in San Francisco, where it had 60,593 square feet at 405 Howard St., to double down on being a remote-first company.
