Stripe sends cartoons to fired employees

Stripe, a payments technology company and the Bay Area’s second-most valuable startup, sent layoff notices to 300 workers Monday — accidentally sending a cartoon image along with the news. The image, attached as a PDF, is a cartoon image of a yellow duckling, labeled “US-Non-California Duck,” according to reports from Business Insider. Rob McIntosh, the company’s chief people officer, sent an email expressing his regret to those who received the second. “I apologize for the error and any confusion it may have caused,” he added. “Corrected and complete notices have since been sent to all affected Stripes,” he shared, using the company’s internal nickname for its employees.

Redundancies were primarily in product and operations roles, with some in engineering also affected. In addition, some affected employees were emailed an incorrect termination date. The company with headquarters in South San Francisco with dual headquarters in Dublin, has around 7,000 employees. It is the largest privately held fintech company with a valuation hovering around $65 billion.

Layoffs: How to get it right

A bizarre misstep in sending a cartoon to laid-off employees is a great way to add insult to injury. In 2022, when Stripe announced it laid off 14% of its workforce, Patrick and John Collison, the company’s co-founders, were remorseful. Their message, which was praised for its openness and vulnerability, said in part: “We are very sorry to take this step and John and I are fully responsible for the decisions leading up to it.”

Note property right in the message. The CEO did not shirk responsibility. Details were given regarding severance arrangements and more. “Most importantly,” the note continues, “while this is certainly not the separation we would have wanted or envisioned when we made hiring decisions, we want everyone who leaves to know that we care about you as former colleagues and appreciate everything you’ve done for Stripe.” The consideration and respect shown here is crucial when parting ways.

When layoffs happen, it’s no joke

Layoffs in technology are widespread as white-collar workers experience a decline in opportunities. For managers who let people go, layoffs are no laughing matter. Sending random cartoon pictures with ridiculous captions might be an honest mistake. But the effect is no joke. It is the exact opposite of the kind of management communication that Stripe’s managers have shown in the past.

Workers, even those who may be low performers, offer dedication, time and service – trading time and effort to help a business grow. When that service is no longer needed, there is still respect. When letting people go, it’s important to understand the emotional impact of the decision. While this impact is not necessarily the responsibility of the employer, recognition is. Acknowledging employee service during a layoff is the best way to part ways.

As layoffs become more prevalent for executives and technology companies, leaders need to get the communication right. Stripe has shown in the past that they can do it — and with several layoffs announced over the past few years, they’ve had some practice. The previous memo from CEO Collison is a master class in respect – making a necessary transition as compassionate as possible. Redundancies aren’t a time for cute pictures—it’s a time for care, consideration, and appreciation as those who let go must figure out what’s next.