Stripe, the digital payments firm valued at $95 billion in its most recent funding round, is decreasing its workforce by about 14% as startups intending to navigate a difficult investment market scramble to cut costs.

Stripe will have around 7,000 employees after the staff cuts, according to an email sent to employees on Thursday by founders Patrick and John Collison.

This year has been a disaster for US technology stocks, as tightening monetary policy and fears of a recession have soured investor sentiment. This has also spilled over into the venture capital market, where nervous investors afraid of overpaying for startups have avoided signing large checks. As it becomes more difficult to justify higher valuations, the pain has become more acute for companies seeking late-stage funding.

Stripe’s internal valuation was reduced by 28% months ago, according to a report (via WSJ).

“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,” Stripe’s founders wrote in an email, adding that they had overhired and increased operating costs too quickly.