- Flutterwave, a startup in payment technology, has let go of twenty-four workers, or 3% of its personnel
- Its CEO said the move is part of their strategy to realign and capitalize on opportunities in their core business segments
- He added that the affected employee will receive some benefits depending on the nation in which they are employed
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
A payment technology startup, Flutterwave, has laid off twenty-four employees, or three percent of its workforce.
Source: Getty Images
The news was released on Monday via a statement from Flutterwave’s CEO, Olugbega Agboola.
Agboola claims that the action is a component of their plan to reorganize and effectively take advantage of the prospects in their main business divisions.
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He added that the company has committed to doing more with its expanding remittance sector, “Send app,” and that it has made a data-driven decision to reallocate resources to its core business, enterprise payments.
He said,
“Consequently, we’ve made the difficult decision to support the transition of 24 Wavers accounting for 3% of our workforce,” Flutterwave said.
“These Wavers are some of the most hardworking people you’d meet. We put in the work and I can confidently say that at Flutterwave, we have a competent workforce where everyone actively contributes.
“But once the data and the business is pointing us to a specific direction, it would be counterproductive for us not to listen and create the right mechanisms to move faster on the opportunities awaiting us.”
Affected workers to get benefits
Agboola further said an average of three months gross salary, depending on the country where the employee is based, will be paid.
He said,
“We will also be monetising your unutilised accrued leave days. You will continue to have free access to our professional training platform for 12 months after your transitioning.”
“We will be providing you with free outplacement service for 3 months. For Wavers with stock options, we will support you with an additional vesting period of 6 months.
“You will have 3 months of free healthcare. You will continue to have access to our mental health and career coaches for 3 months post transitioning.”
The CEO announced that there will be a review of compensation for all remaining staff. This comprises a new performance-based bonus structure linked to individual and team performance criteria, as well as a base wage increase for the majority of employees that is in line with the market.
Agboola stated that a careful examination of market trends and recent employee input were the reasons behind this.
Furthermore, Flutterwave announced that it is investigating methods to customise its enterprise payment solutions and is bringing its remittance service, SendApp, to additional regions.
Flutterwave lost N11 billion to security breach
Legit.ng earlier reported that Flutterwave has suffered another security breach, allowing unknown persons to divert N11 billion to various bank accounts.
Reports say the hackers illegally transferred the N11 billion (about $7 million) to several accounts in April 2024.
The incident happened one month after the company obtained a court order to recover another $24 million lost to unauthorised PoS transactions.
Flutterwave shuts down its creator platform Disha
Legit.ng reported that with effect from March 31, 2024, Disha, a platform for creators that Flutterwave acquired in 2021, would be temporarily shut down.
The platform allows digital creators to curate, sell digital content, create portfolios and receive payments from their audience globally.
The company explained that the decision was necessary to reevaluate its objectives and realign its vision to better serve the creative community.
Source: Legit.ng