The entire world is going through a bad phase. Americans are losing their jobs and credit card companies are lowering their credit limit for the cardholders. Standing in this critical situation, Brex is reconstructing its credit card for start-ups business. In order to cope up with the situation, they have cut 62 staff members. It is said in a blog post by the co-founders of this agency- Henrique Dubugras and Pedro Franceschi.
The co-founders said, “Today we’re restructuring the company to better align our priorities with this new reality, while simultaneously accelerating our product vision. With that, I have some very sad news to share. 62 people will be leaving Brex today”.
The main reason behind is the COVID-19. According to the company, the customer base is facing problems to stay afloat amid this emergency situation. The core business of Brex depends upon the transactions of the customers.
As consumers are losing their sources of income and the amount that cardholders used to spend has been decreased during the coronavirus pandemic, it has become very difficult for this fintech company to sustain the cash flow of their business. Credit card is an attractive option.
The Company has already reduced credit limits for some cardholders in order to keep the situation under control. Dubugras, one of the co-founders of this company has confirmed it. Customers are of the opinion that their card limit has been lowered without giving any notice or warning.
In addition to this, the company has recently raised $150 million. When one of the co-founders is asked regarding the latest fundraise, he said that the capital was not defensive at all. Rather, it was offensive.
He said, “I’m glad this round came together, but if it hadn’t, we would’ve been fine. The capital is so we can play offensive while everyone else plays defensive”. Credit card can work wonders.
In a blog post, the co-founders wrote
“Please continue dreaming big and don’t lose the ambition that attracted you to Brex. Don’t let anything, not even a global pandemic, take that away from you. I wish we could give each one of you a hug, so instead I’ll end this message like I’d do it in Portuguese. Abraços, Pedro and Henrique”.
In addition to this, Brex also said that they are finding new opportunities for their ex-staffs. Credit card runs the economy.
Brex is a fintech company that provides a corporate credit card called the Brex Card for technology, e-commerce, and life science companies. It was founded on 3rd January, 2017 and the Company is based in San Francisco, California.