Fintech giant Stripe is cutting 300 jobs, largely in product, engineering, and operations roles, according to a leaked memo reported by Business Insider on Tuesday. This move comes as a surprise, given the company's plans to grow its headcount by 17% to reach around 10,000 employees by the end of the year.

According to Stripe's Chief People Officer, Rob McIntosh, the layoffs are necessary to ensure the company has "the right people in the right roles and locations to execute against" its plans. The memo suggests that team-level changes were needed to drive the company's growth strategy. Despite the cuts, Stripe remains committed to expanding its workforce, with McIntosh stating that the company intends to increase its headcount by 17% by the end of the year.

This is not the first time Stripe has made significant layoffs. In November 2022, the company announced it was cutting 14% of its workforce, affecting around 1,120 employees out of its then 8,000-person workforce. The fintech giant has been valued at $70 billion as of last July, and has continued to raise funds and conduct tender offers to provide liquidity to employees, rather than pursuing an initial public offering (IPO).

The layoffs may come as a surprise to some, given Stripe's growth ambitions and its significant valuation. However, the move may be seen as a strategic effort to optimize the company's operations and refocus its resources on key areas of growth. As the fintech landscape continues to evolve, companies like Stripe must adapt to changing market conditions and customer needs.

The news also raises questions about Stripe's plans for an IPO. Despite being valued at $70 billion, the company has chosen to raise funds privately and provide liquidity to employees through tender offers. It remains to be seen whether Stripe will reconsider its IPO plans in the future, or continue to grow as a private company.

As the fintech industry continues to navigate the challenges of the current economic climate, Stripe's layoffs serve as a reminder of the need for companies to remain agile and adaptable in order to thrive. The company's plans to grow its headcount by 17% despite the layoffs suggest that Stripe remains committed to driving innovation and growth in the fintech space.