Digital payments firm Stripe has cut some jobs at tax compliance startup TaxJar, which it purchased in 2021, a report from TechCrunch says.
Citing undisclosed sources, the publication reported that the move is part of Stripe’s strategy to wind down TaxJar-focused go-to-market efforts in late July.
The layoffs, which was carried out over the last month, is said to have impacted between 45 and 55 employees.
Some of the laid off employees have been given option to apply for internal postings at Stripe withing the next 30 days, the sources told TechCrunch.
As per LinkedIn, TaxJar’s co-founder Matt Anderson quit Stripe last month. Employees from sales, marketing and partnerships divisions also left TaxJar, which offers various cloud-based tax services that enable its users to automatically estimate, report and file sales taxes.
During the time of acquisition, Stripe stated that the entire workforce of 200 people working at TaxJar would become a part of the company.
Stripe bought the US-based firm with an aim to combine the collection of sales tax and remittance as a service, which has garnered huge demand from the users.
Last month, Stripe underwent a 409A estimation process, which reduced the firm’s internal valuation by 28%.
Investors have valued Stripe at $95bn. However, the company’s implied new internal share price is nearly $74bn.
Last month, Chicago-based company Focused Labs announced a partnership with Stripe to help businesses migrate to modern payment systems.