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Flutterwave Lays Off 3% of Workforce Amid Strategic Shift

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Flutterwave, a leading African payments company, has laid off approximately 30 employees, which accounts for around 3% of its workforce. This decision follows the company’s strategic repositioning to focus on its most profitable areas: enterprise and remittance.

Strategic Realignment

  • Focus Areas: The company is doubling down on remittance and enterprise services, which are its primary revenue drivers.
  • Product Shutdown: This shift led to the shutdown of Barter, a product line that no longer aligns with the company’s strategic goals.
  • Reason for Layoffs: According to Flutterwave, the layoffs were necessary to eliminate redundant roles and align resources with their new strategic focus.

Employee Impact

  • Notification: Employees were informed about the layoffs during a town hall meeting.
  • Compensation: Affected employees will receive an average of three months of gross salary, with variations depending on their country of residence. Additionally, they will be compensated for any unutilized accrued leave days.

Company Statement

Flutterwave released a statement explaining the layoffs:

“After a thorough analysis of our strategic priorities, including a renewed focus on enterprise customers and remittances, we came to the conclusion that some roles within the organisation are redundant. 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.”

Future Plans

  • IPO Readiness: The company has revived discussions about a potential public listing, which had been postponed in previous years. CEO Gbenga Agboola emphasized the importance of corporate governance and operational efficiency to be IPO-ready.
  • Long-term Vision: Flutterwave aims to build a robust infrastructure to support its long-term presence and growth in Africa.

Agboola stated:

“Right now our goal is to be IPO-ready, ensuring we have the right corporate governance in place, making sure we are operating well. We want to be a long-term company in Africa, for Africa – and so the goal is building the right infrastructure to be here for the next ten-plus years.”

What we think

Flutterwave’s recent layoffs reflect a strategic pivot towards its core revenue streams in enterprise and remittance services. While the decision impacts a portion of its workforce, it is aimed at ensuring the company’s long-term growth and sustainability as it prepares for potential future public listing.

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