Brass business banking fintech
The news of Paystack leading a consortium to acquire Brass, the Nigerian business banking startup, was initially met with cheers. It signaled a potential win-win – a lifeline for Brass and a strategic expansion for Paystack. However, the initial optimism has been tempered by a wave of restructuring and layoffs.
Furloughed Employees Let Go: While initial reports suggested only top brass like CEOs and CTOs departed, the reality paints a different picture. Sixteen employees put on furlough in March 2024 were let go permanently. Brass cited its “new operating model” prioritizing financial prudence as the reason for downsizing. This came as a blow to these employees who were promised their eventual return after furlough. Reports suggest their layoffs coincided with the acquisition announcement.
Remaining Staff Face Re-evaluation: The restructuring wasn’t limited to furloughed employees. Remaining Brass staff, including some executives and team leads, were presented with a choice: resign or be re-evaluated for their roles through interviews. This process apparently resulted in only 70% of non-furloughed employees keeping their positions under the new Brass entity. Those departing received a one-month severance package.
New Leadership and Uncertain Future: The company is currently without permanent leadership, with a team comprised of both former Brass and current Paystack employees handling interim management. This uncertainty adds to the concerns of remaining staff.
The Road Ahead: Balancing Growth and Stability
While consolidation can be beneficial, Brass’s experience highlights the human cost of such restructuring. Balancing growth with employee security remains a challenge. The success of Brass’s future hinges on effectively integrating with Paystack and offering a seamless experience for all stakeholders – customers, investors, and most importantly, the employees who remain the backbone of the company. Only time will tell if Brass can emerge leaner, stronger, and continue its mission to empower Nigerian SMEs.