Nigerian cryptocurrency Exchange, Quidax, has laid off at least 20 of its staff, representing 25% of its workforce.
This is coming just a few months after the company splashed millions of naira sponsoring season seven of Big Brother Naija, the most popular reality TV show in Nigeria.
The company first slashed its workers’ salaries by 30% in August this year, while the layoffs came as the last straw.
Coming at a time when the crypto industry is still battling with the effects of the collapse of the world’s second-largest crypto Exchange, FTX, Quidax clarified that its layoffs have no connection with the FTX saga, as it has “no relationship with FTX”.
Economic downturn: The company, however, blamed its woes on the economic downturn. In a statement announcing the layoff, the company said:
- “We have some difficult news to share with our community today. Following the economic downturn around the world, we have had to make some tough decisions at Quidax. We had to say goodbye to 20% of our exceptionally talented people. We deeply value our people and it has not been an easy decision to make.
- “In June 2021, the global economy was on track to stage a solid post-COVID recovery with at least a 5.6% growth. Things were looking up and we made several plans and growth projections as a company at the start of 2022. In 2022, the three largest economies – China, the USA, and the Euro area – saw reduced growth. This has affected the global economy, which slowed to 3.2% growth.”
While assuring that its customer funds are safe and insured through an insurance cover from its custody partner, Quidax said it remains in business and is “not going anywhere, anytime soon.”
Severance packages: For the sacked staff, the company said it would continue to provide support for them by giving them a severance package and providing health insurance for affected employees and their families.
- It added that affected employees will also be paid for the notice period they would have had to give if they had resigned. “We will connect affected employees to our network of companies and founders within the fintech space,” it said.
When the going was good: Back in March this year, Quidax had unveiled the popular showbiz personnel, Don Jazzy, as its Ambassador in a multimillion-naira contract.
- The company followed suit in July by being one of the sponsors of BBNaija Season 7, where it also doled out N10 million plus a Dubai trip to viewers of the show.
It is disappointing that Quidax bit more than it can chew by lavishly sponsoring BBNaija and getting an Ambassador at the wrong time. The company plan to fail in the midst of plenty, and forgotten the interest of it’s players, I mean it’s staff. I think Quidax needs you need to consult Warren Buffet to give you some tips in management & investment portfolio.
This is bad omen.
I have not seen any review or article published on the crypto crash in Nigeria called Dmining.top that crashed this November and swallowed thousands of investors money away. The dmining,top was versioned for the Nigeria market despite the CBN warnings the crypto enjoyed patronage but it disappeared from its domain and its app/telegram page vanished from the digital platforms leaving its customers helpless. . This creates lots of questions in my mind as I research and study more about the crptocurrency and blockchain technology.