Stripe, the digital payments giant founded by Limerick brothers Patrick and John Collison, is to lay off 14% of its workforce globally.
The business, which was valued at $95 billion (€97 billion) in its last funding round, will reduce its workforce, according to an email sent to employees on Thursday from the Collison brothers.
The Limerick brothers said the job losses will bring the numbers employed by the company back to 7,000 from around 8,000 currently.
This year has been a disaster for US technology stocks as tightening monetary policy and fears of a recession have soured investor sentiment.
That has also spilled over into the venture capital market, where jittery investors concerned about overpaying have avoided signing big checks for startups.
As higher valuations become more difficult to justify, the pain has become more acute for companies seeking late-stage funding.
According to a report, the layoffs come months after Stripe reduced its internal valuation by 28%.
We were much too optimistic about the internet economy’s near-term growth in 2022 and 2023 and underestimated both the likelihood and impact of a broader slowdown,” the founders said in the email.