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Why Flutterwave Sacked 30 Employees

Flutterwave, a San Francisco and Lagos-based fintech company led by Nigerian multimillionaire tech entrepreneur Olugbenga Agboola, has laid off about 30 people, accounting for roughly 3% of its workforce.

This comes three months after the company announced a shift in focus to its two main revenue drivers: remittances and enterprise.

Flutterwave confirmed the layoffs but did not disclose specifics on the affected teams.

“After a thorough analysis of our strategic priorities, including a renewed focus on enterprise customers and remittances, we concluded that some roles within the organization are redundant,” Flutterwave told me.

Employees were notified of the layoffs at a town hall meeting on Monday afternoon, according to two people with direct knowledge of the situation. According to one source, the affected roles are tied to items that the corporation no longer pursues.

“We will pay an average of three months’ gross salary, depending on where the employee is based.” “We will also monetize their unused accrued leave days,” Flutterwave said.

The fintech company revealed that enterprise was its major revenue source, with retail products accounting for a small portion of its income. “Since our founding eight years ago, we have not had to implement a workforce reduction plan, but it became a necessary step in this instance to align our current resources with our go-forward strategy and improve our operational efficiency,” the company said.

In 2024, Flutterwave resumed conversations about a prospective public offering, which had been postponed in 2022 and 2023 due to changes in the C-suite.

“Our current goal is to be IPO-ready, which includes ensuring that we have the proper corporate governance in place and that we are running efficiently. We want to be a long-term company in Africa, for Africa, so the goal is to establish the necessary infrastructure to remain here for the next ten years or more,” CEO Gbenga Agboola stated.

2023 proved to be a successful year for Flutterwave’s expansion. The company expanded into Rwanda and Egypt, formed a strategic agreement with India’s IndusInd Bank Ltd., and invested $50 million in Kenya to obtain an operating license.

Flutterwave, founded in 2016, is leading Africa’s payments revolution. The company, with headquarters in San Francisco and Lagos, is a success story in the continent’s growing fintech industry.

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