Brex, valued at $12.3B earlier this year, lays off 11% of staff as part of restructuring • ZebethMedia

The startup’s CFO is departing to join Rippling, which recently entered the spend management space

Mary Ann Azevedo

12 hours

Corporate spend management startup Brex has laid off 136 people, or 11% of its staff, across all departments as part of a restructuring, the company has told ZebethMedia exclusively.
After the layoffs, Brex has just over 1,150 employees.
It’s been a tumultuous year for Brex, which announced in April that it was leaning into the enterprise segment. That new focus led to the company announcing in June that it would no longer work with small businesses or non professionally funded startups. The latter news caused a bit of an uproar — and some feelings of abandonment — in the startup community, which Brex initially set out to serve.
Internally, the move apparently left less of a need for certain internal staff who were focused on serving those SMBs. Brex said it initially tried to “repurpose” as many roles as it could before ultimately deciding it had to let some people go.
The layoffs also are evidence that even decacorns are not immune to the challenging macro and fundraising environment that 2022 has brought us. It was exactly nine months ago that Brex confirmed that it had raised $300 million in a Series D-2 round at a $12.3 billion valuation. Greenoaks Capital and TCV co-led that financing, which brought the three-year-old San Francisco-based startup’s total raised to $1.2 billion.

Unsurprisingly, Brex cited the challenging macro environment in its decision. 
In a blog post, co-founder and co-CEO Pedro Franceschi wrote:
Late last year we decided to sharpen our focus and serve fewer customers really well. Today’s change is a continuation of this. We’ve been laser-focused on serving early-stage startups and scaled companies this year, and we’re very grateful for the momentum we’ve seen on Empower since we launched in April.
While we’re fortunate to be in a strong financial position with many years of runway, the new macro environment is materially different from the first five years of Brex, and warrants a new level of focus and financial discipline. We know the importance that our customers place on Brex’s financial strength, and this change will put us on a path to sustainable profitability over the next few years.
Over the summer, Sam Blond left his role as chief revenue officer at Brex to become an investor at Founders Fund. His replacement, Doug Adamic, had over 16 years experience at SAP/Concur — most recently as that company’s chief revenue officer — and is helping drive enterprise sales, according to the company.
More recently, sources told ZebethMedia that Adam Swiecicki is stepping down from his role as chief financial officer at Brex, a position he assumed late last year when Michael Tannenbaum took on the position of chief operating officer. He will be joining workforce platform Rippling, which recently entered the spend management space, as CFO. Brex confirmed Swiecicki’s impending move, with co-founder and co-CEO Henrique Dubugras telling ZebethMedia: “We’re happy for Adam in his next role and it’s always great to see our team land with great companies. Rippling is a Brex partner and is focused on the small business market, while Brex has moved upmarket. From our side, Michael Tannenbaum will resume the role of CFO.”
Moving forward, Tannenbaum — who began serving as CFO initially in 2017 — will serve in both positions. Swiecicki’s decision to leave is reportedly unrelated to the layoff.
In an attempt to soften the blow for the laid-off workers, Brex said the affected employees will receive eight weeks of pay, with an additional two weeks for each complete year of service. For those with less than one year at the company, the startup said it is waiving the equity cliff. And for those with options, it is offering to extend the exercise period to seven years.
Impacted workers will have access to current healthcare benefits through the end of the month, and then Brex says it will pay for six months of health insurance. The company says it is also dedicating part of its recruiting team to help those impacted “find new opportunities,” and will prioritize hiring them back “as roles open up over time.”
Additionally, Brex is letting all impacted employees keep their computers. 
Brex started its life focused on providing credit cards aimed mainly at startups and SMBs. It gradually evolved its model with the aim of serving as a one-stop finance shop for these companies before its aforementioned pivot to a focus on enterprise earlier this year.
A company spokesperson told ZebethMedia that the company is “getting some really strong signals on Empower,” its new enterprise-focused software offering. Since Empower’s April launch, its monthly active user count has grown 5x month-over-month “on an increasingly large base,” the spokesperson added. It also, the company said, passed $3 billion in annualized processing volume in less than three months of the platform going live.
Meanwhile, the spokesperson told ZebethMedia that Brex cash deposits are up 100% year over year, noting that rising interest rates have actually increased the revenue in its deposits business. Brex declined to share hard revenue figures, saying only that “growth — even in this environment — is remaining quite strong.”  
The company obviously took a big chance by betting on the enterprise space. It will be interesting to see how that bet plays out.
Reporter’s note: The story was updated post-publication to clarify that Swiecicki will be joining Rippling as CFO.
My weekly fintech newsletter, The Interchange, launched on May 1! Sign up here to get it in your inbox.

             Disclaimer: Any Product You Buy Here, Amazon Pays me A Commission With No Additional Fee.

 

This is a must Have Software For Your Home & Business. This software will help your business and make your job Stress Free.

Business and Office Management  Category.

(Old Version) H&R Block Tax Software Deluxe + State 2023 with Refund Bonus Offer (Amazon Exclusive) (PC/MAC Download)

(4264)

20% Off $49.99 $39.97 (as of November 21, 2024 06:11 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Choose to put your refund on an Amazon gift card and you can get a 2% bonus. One state program download included. State e-file sold separately. Reporting assistance on income from investments, stock options, home sales, and retirement Guidance on max... read more

Acrobat Pro | 1-Month Subscription | PDF Software |Convert, Edit, E-Sign, Protect |Activation Required [PC/Mac Online Code]

(1444)

$29.99 (as of November 21, 2024 06:33 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Create and edit PDFs. Collaborate with ease. E-sign documents and collect signatures. Get everything done in one app, wherever you go. Edit text and images without jumping to another app. E-sign documents or request e-signatures on any device. Recipi... read more

Adobe Photoshop Elements 2025 & Premiere Elements 2025 Student & Teacher Edition | PC/Mac Code | Box with Download Code | Photo & Video Editing | 3-year term license | Activation Required

(17)

$79.99 (as of November 21, 2024 05:39 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Remove photo objects with AI power. Create and control photo depth with AI. Change the color of any object in your photo. Seamlessly combine multiple pics. Create dynamic video titles with text styling controls. Access free Adobe Stock video title te... read more

Adobe Photoshop Elements 2025 | Photo Editing | 3-Year Term License | PC/MAC | Box with Download Code | Activation Required

(17)

$99.99 (as of November 21, 2024 05:37 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Remove objects with AI power. Create and control depth with AI. Change the color of any object. Seamlessly combine multiple pictures. Create with modern textures and graphics. Be creative with the web and mobile beta apps. Get a 3-year term license f... read more

AVG Ultimate 2024 | Antivirus+Cleaner+VPN | 5 Devices, 2 Years [PC/Mac/Mobile Download]

(1124)

14% Off $34.99 $29.99 (as of November 21, 2024 06:11 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

AVG ULTIMATE: Your all-in-one antivirus, VPN, and tuneup combo. OUR BEST SECURITY: Enjoy our advanced, real-time security for your computers, tablets, and phones. OUR BEST PRIVACY: Secure your privacy with powerful encryption so no one can see what y... read more

Bitdefender Total Security - 5 Devices | 1 year Subscription | PC/Mac | Activation Code by email

(2361)

50% Off $89.99 $44.99 (as of November 21, 2024 06:43 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

SPEED-OPTIMIZED, CROSS-PLATFORM PROTECTION: World-class antivirus security and cyber protection for Windows, Mac OS, iOS, and Android. Organize and keep your digital life safe from hackers. ADVANCED THREAT DEFENSE: Your software is always up-to-date ... read more

Bitdefender Total Security 2024 – Complete Antivirus and Internet Security Suite – 5 Devices | 2 year Subscription | PC/Mac | Activation Code by Mail

(3511)

$74.99 (as of November 21, 2024 05:37 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

SPEED-OPTIMIZED, CROSS-PLATFORM PROTECTION: World-class antivirus security and cyber protection for Windows (Windows 8, Windows 8.1, Windows 10, and Windows 11), Mac OS (macOS X Yosemite 10.10 or later), iOS (11.2 or later), and Android (5.0 or later... read more

Clifford The Big Red Dog Thinking Adventures CD-ROM Parent's Guide Ages 4-6

(9)

-85% Off $2.43 $4.50 (as of November 21, 2024 05:37 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

CLIP STUDIO PAINT PRO - Version 1 - Perpetual License - for Microsoft Windows and MacOS

(3061)

$23.99 (as of November 21, 2024 06:18 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Create original sketches using your mouse or draw naturally with a pen tablet. Powerful coloring tools make CLIP STUDIO PAINT your all-in-one illustration, painting, manga and comic creation solution. Use an assortment of powerful art tools for illus... read more

CodaKid Roblox Coding, Award-Winning, Coding for Kids, Ages 9+ with Online Mentoring Assistance, Learn Computer Programming and Code Fun Games with Lua and Video Game Programming Software (PC & Mac)

(332)

$59.00 (as of November 21, 2024 05:32 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

CodaKid’s Roblox Lua coding educational software provides 100+ hours of interactive student projects designed to engage and educate kids, teaching them to become creators in their own right. Students learn real Lua coding and video game design using ... read more