Brex axes 20% of staff

In a message to employees, shared on the company's blog, co-CEO Pedro Franceschi says the job cuts as part of a restructuring to become a "high-velocity company".

Franceschi says the axe is being wielded following a hard look at the company's structure that will result in fewer management layers.

As part of this, there will be senior leadership changes, with COO Michael Tannenbaum transitioning to the board, replaced by SVP of global operations Camilla Morais. Meanwhile, CTO Cosmin Nicolaescu will take on an advisor role.

Writes Franceschi: "We’re changing our operating model, expecting leaders to operate at all levels moving forward, promoting from within, increasing in-person collaboration in our hubs, and concentrating the time zones in which we operate."

This is the second major round of job cuts for Brex in little over a year. In October 2022 it laid off 11% of its workforce, citing the "new macro environment".

In his post today, Franceschi conceded that the company had grown too quickly. Launched in 2017 with a corporate card for venture backed businesses it quickly grew its offering and within four years had secured a valuation north of $12 billion.

However, according to a recent report from The Information, Brex has told employees that it burned $17 million a month in the fourth quarter and only has “enough cash to last through March 2026".