African payments giant, Flutterwave, has undergone a workforce restructuring, laying off approximately 30 employees, representing 3% of its total staff. This move comes three months after the company announced a strategic shift to prioritize its two most profitable sectors: remittance and enterprise solutions.
The layoffs follow the closure of Barter, a product deemed non-essential under the new strategic direction. Details regarding the specific impacted teams remain undisclosed by Flutterwave. However, sources with inside knowledge suggest the affected roles were primarily associated with discontinued products.
In a statement to TechCabal, Flutterwave explained the decision resulted from a rigorous evaluation of their strategic priorities. The company emphasized the need to streamline operations and optimize resource allocation to align with their focus on enterprise customers and remittance services.
Employees were informed of the layoffs during a town hall meeting held on Monday. The company has committed to providing a severance package that includes an average of three months’ gross salary, tailored to the employee’s location. Additionally, unutilized accrued leave days will be financially compensated.
This workforce reduction marks a first for the eight-year-old fintech company. While acknowledging the difficulty of the situation, Flutterwave maintains that the move is necessary to ensure efficient operations and achieve their long-term goals.
The restructuring aligns with Flutterwave’s renewed interest in an Initial Public Offering (IPO). Following a C-suite leadership reshuffle in 2024, discussions regarding a potential public listing have resurfaced after being tabled in 2022 and 2023.
Gbenga Agboola, CEO of Flutterwave, emphasized the company’s commitment to Africa. In an interview with Semafor in April 2024, he stated, “Our current focus is achieving IPO readiness. This involves establishing robust corporate governance and ensuring optimal operational efficiency. We envision Flutterwave as a long-standing African company built to serve Africa for the next decade and beyond. Our primary objective is to establish the necessary infrastructure to ensure our continued presence here.”
In essence, Flutterwave’s workforce restructuring reflects a strategic shift towards solidifying their core business model. While the layoffs are unfortunate, the company’s commitment to severance packages and a renewed focus on its core offerings suggests a calculated move towards long-term sustainability and a potential IPO.