Stripe, the digital payments giant founded by Limerick brothers Patrick and John Collison, is to cut its headcount by about 14 per cent.
The business, which was valued at $95 billion (€97 billion) in its last funding round, will reduce its workforce to approximately 7,000 employees, according to an email to employees from the Collison brothers on Thursday.
US technology stocks have been crushed this year as tightening monetary policy and worries of a looming recession 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.
The pain has been more acute for companies seeking late-stage funding as it becomes tougher to justify higher valuations.
The layoffs come months after Stripe cut its internal valuation by 28 per cent, according to a report.
"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.
The Collison's added they had overhired and grew operating costs too quickly. -Reuters