Flutterwave, a leading African payments technology company, has laid off 24 employees, representing 3% of its workforce. This reorganisation is part of Flutterwave’s efforts to streamline operations and focus on its core business areas, particularly enterprise payments and the expanding remittance segment through its SendApp.
Olugbenga Agboola, founder and CEO of Flutterwave, emphasised the data-driven approach behind this decision, highlighting the necessity to adapt swiftly to market opportunities.
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“These Wavers are some of the most hardworking people you’d meet. We put in the work, and I can confidently say that Flutterwave has a competent workforce where everyone actively contributes.
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But once the data and the business point us in 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,” Agboola stated.
Severance Package and Employee Support for Flutterwave’s Sacked Staff
The affected employees, referred to as “wavers,” will receive a comprehensive severance package, which includes an average of three months gross salary, monetisation of unutilised accrued leave days, 12 months of access to the company’s professional training platform, and three months of free outplacement services.
Additionally, Flutterwave provides six months of stock option vesting, three months of free healthcare, and continued access to mental health and career coaches for three months.
Despite the layoffs, Flutterwave is implementing a comprehensive company compensation review. This new structure includes upward adjustments to base pay and a performance-based bonus system, aligning compensation with market trends and employee feedback.
The move aims to position Flutterwave competitively within the industry, placing it in the 95th percentile for junior employees and the 85th percentile for senior employees.
Flutterwave is also planning to hire for key senior roles in risk, compliance, engineering, data, and finance. Agboola noted that the company is operationalising additional licences for SendApp, bringing more countries online for senders and receivers.
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Market Trends and Layoffs Context
Flutterwave’s downsizing follows a recent trend of layoffs in the tech ecosystem, where startups are optimising their operations due to a funding downturn. Since 2020, over 1,500 workers have been laid off, and over 22 startups have either slashed their workforce or shut down entirely in Nigeria, according to data from layoffs.
FYI, a global website tracking shutdowns and layoffs in the tech ecosystem. Brighter Bridges, a data insight firm, disclosed that over 2,500 African tech employees were laid off in 2023.
Flutterwave’s decision to refocus and streamline operations reflects broader industry trends and the company’s commitment to sustaining growth in a challenging economic environment.