Digital payments platform Stripe lays off employees

SAN FRANCISCO: Digital payments platform Stripe has reportedly laid off some of the employees who support TaxJar -- a tax compliance startup that it acquired last year.

The layoffs -- conducted over the last month -- are related to Stripe's decision to wind down TaxJar-focused go-to-market efforts in late July, citing sources, TechCrunch reported.

Sources estimate the number of employees impacted by the workforce reduction is between 45 and 55 folks, at least a portion of whom were invited to take 30 days to apply to internal jobs at Stripe.

According to LinkedIn, TaxJar's co-founder Matt Anderson left Stripe in July, followed by folks in the sales, marketing and partnerships teams.

Stripe bought TaxJar, a provider of a cloud-based suite of tax services, in April 2021 to help its customers "automatically calculate, report and file sales taxes".

At that time, Stripe told TechCrunch that all 200 employees of the Massachusetts-based business were joining the company. The goal of the acquisition was to integrate sales tax collection and remittance as a service, one of the most requested features among users.

In July, Stripe went through a 409A valuation process that saw its internal valuation cut by 28 per cent.

The company is valued by investors at $95 billion, but the implied new internal share price is around $74 billion.