Brex, <\/a> last valued at $2.6 billion, is restructuring its credit card for startups business and cut 62 staff members, the co-founders Pedro Franceschi and Henrique Dubugras said in a blog post.<\/a><\/p>\n “Today we’re restructuring the company to better align our priorities with this new reality, while simultaneously accelerating our product vision. With that, I have some very sad news to share. 62 people will be leaving Brex today,” the post reads.<\/p>\n The cuts come as Brex’s customer base itself is struggling to stay afloat amid COVID-19: high-growth startups. The trickle-down to Brex’s core business, which depends on its customers spending money, was thus expected.<\/p>\n Brex has already cut some customer credit limits to mitigate some of the exposure risk, The Information<\/a> reported, and Dubugras confirmed. Customers say the credit limit cuts came without warning or notice.<\/p>\n Additionally, the company, launched in Brazil and graduated from Y Combinator, raised $150 million recently<\/a>.<\/p>\n When TechCrunch talked to Dubugras about the latest fundraise, the co-founder said the capital was offensive, rather than defensive.<\/p>\n “I’m glad this round came together, but if it hadn’t, we would’ve been fine,” he said last week. “The capital is so we can play offensive while everyone else plays defensive.”<\/p>\n In the blog post, the co-founders wrote to former staffers.<\/p>\n “Please continue dreaming big and don’t lose the ambition that attracted you to Brex. Don’t let anything, not even a global pandemic, take that away from you. I wish we could give each one of you a hug, so instead I’ll end this message like I’d do it in Portuguese. Abraços, Pedro and Henrique.”<\/p>\n Those laid off will be provided with eight weeks of severance, their computer and equipment, and Brex will dedicate a part of its recruiting team to help find new opportunities for ex-staffers. Additionally, Brex is making adjustments to the equity cliff and has extended healthcare benefits through the end of 2020.<\/p>\n Brex has amassed $465 million in venture capital funding to date.<\/p>\n<\/div>\n Tags:<\/b> Natasha Mascarenhas<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" Brex, last valued at $2.6 billion, is restructuring its credit card for startups business and cut 62 staff members, the co-founders Pedro Franceschi and Henrique Dubugras said in a blog post. “Today we’re restructuring the company to better align our priorities with this new reality, while simultaneously accelerating our product vision. With that, I have some very … Continue reading Brex, the credit card for startups, cuts staff amid restructuring<\/span><\/a> Continue Reading
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Natasha Mascarenhas<\/p>\n
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