86 minutes of paid-UGC alphaHector Serrano · Wispr Flow
ChatGPT Should Have Killed His AI SaaS. Instead, He's Nearing $10MAlon Talmor · Mosaic AI
Databricks' Ali Ghodsi Never Wanted to Be CEO. Now He's Among the BestAli Ghodsi · DatabricksTopics / 🙈 Learning from mistakes
CEO Patrick Collison's email to Stripe employees
Patrick Collison, co-founder and CEO of Stripe, tells employees the company is cutting about 14% of its team. He and his brother John take responsibility, naming two mistakes: too much optimism about internet economy growth, and letting operating costs grow too fast. He explains the severance support and why he still feels good about Stripe's position.
We link to the original and never republish it. All credit to Patrick Collison.
Key takeaways
- Collison names two specific mistakes: he was too optimistic about 2022 and 2023 growth and underestimated the chance and impact of a slowdown, and costs grew too quickly.
- He says growth in new product areas let coordination costs and operational inefficiencies seep in.
- The founders say they made the decision and are fully responsible, rather than blaming outside conditions alone.
- Departing staff get 14+ weeks of severance, their 2022 bonus, unused PTO, 6 months of healthcare cash, accelerated vesting with cliffs waived, career help and immigration support.
- The cuts are uneven: Recruiting is hit hardest because Stripe will hire fewer people next year, and headcount returns to its February level of almost 7,000.
Who it's for
Founders who have overhired after a fast growth stretch and must plan a layoff or a cost reset.
Why it's worth your time
It is a clear example of owning mistakes, explaining the reasons and setting generous exit terms in one message, and the lessons on overhiring still hold.
More from Patrick
All from Patrick Collison →
More on learning from mistakes
All 77 →
The best founder writing, in your inbox
Hand-picked essays, talks and decks from the founders who built the companies. Free, and you can unsubscribe any time.