I sent the following email to the Brex team today. It’s incredibly difficult to say goodbye to our teammates, and today is about ensuring we treat them with compassion and respect.

The reason behind this hard decision is two-fold: increasing focus on our strategy, and adjusting to the new macro environment. 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.

At the same time, it’s extremely sad that we have to part ways with some of our teammates, and I’m sorry for the stress and uncertainty that this change will inevitably cause them. We’ve tried to be generous and supportive in terms of severance pay, equity, healthcare, and job search support.

As difficult as these changes are, they will help us become a more enduring company, delivering amazing outcomes to customers over the long-term.

Team,

As I just shared in our team meeting, today is a difficult day for Brex. With a heavy heart, we’re restructuring Brex and saying goodbye to 136 of our Brex teammates today — approximately 11% of the company.

With the clarity we’ve gained on our strategy this year, and the uncertain economic landscape, we decided to make some hard decisions to continue winning in this new reality.

Over the last two years, we’ve grown our headcount to serve multiple customer segments — and at times, we’ve grown really fast. As we’ve sharpened our focus, we’ve repurposed as many roles as possible to new priorities, and yet we still identified roles that don’t fit our new focus. While impossibly hard, these changes will create more focus and financial discipline for the company, and put us on a path to sustainable profitability over the next few years.

Here’s what happens next. Everyone at Brex will receive an email in the next hour indicating whether or not they have been impacted. For those leaving us today, you will receive a calendar invite to meet 1:1 with a member of leadership, which will allow you to discuss this change, learn about your separation package, and ask questions.

We want to be as thoughtful as possible in supporting those who are leaving us today, so here’s what we are offering them:

• Severance pay: Every impacted employee will receive eight weeks of pay, with an additional two weeks for each complete year of service.
• Equity: For those with less than one year at Brex, we’re waiving the equity cliff. For those with options, we’re offering to extend the exercise period to seven years.
• Healthcare coverage: All current healthcare benefits will remain active through the end of the month, and then we will pay for six months of health insurance.
• Recruiting and job search support: We are dedicating part of our recruiting team to help those impacted find new opportunities. As roles open up over time, we will also prioritize hiring back our teammates.
• Technology: Those impacted will be able to keep their computer and any other equipment provided so they have the tools needed to find their next opportunity as quickly as possible.

To those who are staying: we know it’s hard to see our teammates leave. We’ll talk more about this change and what’s next for Brex in Thursday’s All Hands.

To those who are leaving: we are so grateful for the energy, ingenuity, and commitment you brought to the company. Brex wouldn't be here without you. I'm sorry this decision impacts you in such hard ways, and we will do everything we can to support you in this difficult moment. Each one of you has put a tremendous amount of faith into Henrique and myself, and we don't take that for granted. Thank you for sharing your greatness with us and being a part of our story.

With respect and gratitude,

Pedro