Brex Cuts 20% Workforce
Brex, a US-based expense management platform, has stated that it will eliminate 282 roles, or around 20 per cent of its overall staff, in its latest round of job cutbacks as part of a business restructuring.
In a note to the company's personnel this week, Brex founder and co-CEO Pedro Franceschi explains that the cuts are the result of the business 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 become a board member, while Camilla Morais, the company's SVP of global operations, will take his position.
Cosmin Nicolaescu, the platform's chief technology officer (CTO), will transition to an advisory role this summer, while James Reggio, its engineering director of AI products, will become vice president of engineering.
Franceschi earlier announced in October 2022 that it will reduce its employment by 11 per cent, or 136 employees, due to macroeconomic difficulties and a fresh focus on serving early-stage start-ups and scalable organisations.
This change happened after the platform announced in June 2022 that it would stop service "traditional" small businesses that did not fit into its "core customer base".
