American financial technology company Brex has retrenched 62 positions as it begins restructuring its operations for new product development.

The Silicon Valley fintech unicorn is also expected to move other company employees to different teams or change their roles and responsibilities.

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According to sources, the latest redundancies accounts for 17% of the company’s total workforce.

The company said that the laid off employees will be paid eight weeks of pay and it will waive the equity cliff with a vesting period of less than a year.

In their blog, Brex co-founders Dubugras and Pedro Franceshi said: “Three months in, it’s clear that the impact of Covid-19 won’t be short-lived.

“We know that the pace of growth won’t be what we expected for the foreseeable future.

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“We are restructuring the company to prioritize building over growing over the next year, and be ready to serve the new businesses that will be created as the economy recovers with a stronger product.

“This decision means we will need to revisit investments that no longer make sense in the new reality we now live in.

“Some teams will unfortunately need to be reduced, some roles changed and some people asked to move teams.”

Last month, Brex raised $150m investment to improve its product offerings and boost its balance sheet amid the Covid-19 pandemic.

Recently, Brex also introduced a new rewards programme to better serve customers who are working remotely.

The company added contactless payment support for Apple Pay and Google Pay and helped its customers obtain millions of dollars in CARES Act Payment Protection Program loans.

Brex released its all-online bank account replacement product Brex Cash, which enables entrepreneurs to sign up for a savings and payments product remotely within 10 minutes.