Stripe Inc., one of the world’s most valuable startups, will trim 1,000 of its staff strength as it seeks to cut costs anticipating an economic downturn. 

According to a Bloomberg report, the firm’s co-founders Patrick and John Collison in an email to staff indicated the shakeup. 

“We were much too optimistic about the internet economy’s near-term growth in 2022 and 2023 and underestimated both the likelihood and impact of a broader slowdown,” the Collison brothers said in the email.

The company in July told staffers that an internal valuation for the company dropped to about $74 billion, compared to the $95 billion it received in its most recent fundraising.

The report further said departing employees will receive at least 14 weeks of severance, and the brothers vowed to pay annual bonuses and unused paid time off for all workers affected by the cuts. 

Stripe, with offices in South San Francisco and Dublin, is known for technologies that allow customers to take payments over the internet. In 2021, businesses processed more than $640 billion in payments on the company’s platforms, a 60% increase from a year earlier.

The Collisns’ email also revealed that Stripe’s revenue has more than tripled since the start of the pandemic. The company has continued to experience momentum in recent weeks, signing up 75% more new customers in the third quarter than it did in the year-earlier period, the owners said.