Nigerian fintech startup, Paystack, is set to lay off 33 of its employees based in Europe and the United Arab Emirates (UAE) as it seeks to prune its operations outside Africa.
The company’s CEO, Shola Akinlade, announced the development on Thursday via a post on his X handle. According to him, the company is changing its operating model to have its team located in within the markets it is serving in order to localize costs.
As compensation for the employees that will be let go, Akinlade said the company would give them 4 months’ salary, accelerate their equity vesting, extend their health insurance by 3 months, “and more.”
A difficult day
Typical of how founders and CEOs have been announcing layoffs since the tech layoff tsunami started last year. Akinlade said:
- “Today was a difficult day at Paystack. We’re reducing our operations outside of Africa and will be parting ways with up to 33 employees in Europe and the UAE. In the last 3 years, our hiring philosophy was to recruit great talent regardless of location, including opening an engineering hub in Dubai.
- “We’re changing our operating model to prioritize locating team members within the markets we serve, to localize costs and get closer to customers. We’re sparing no expense to minimise disruption to the lives of team members. The severance package includes 4 months’ salary, accelerating equity vesting, extending health insurance by 3 months, and more.
- “These are some of the most talented people I’ve ever worked with, and my goal is to ensure that every single one finds new roles as soon as possible. I’m personally happy to vouch for each one and do reference calls as needed.”
Paystack’s operations
Paystack, which was acquired by Stripe in 2020 for $200 million, has been making progress in deepening its operations in Africa. The company currently operates in Nigeria, Ghana, South Africa, and Kenya.
- On November 2, 2023, Paystack announced that it had obtained the required licenses to conduct business in Egypt and Rwanda. It also partnered with financial institutions to provide financial services in Côte d’Ivoire.
- The expansion, which started with a private beta phase, will help Paystack “refine our platform in each of these countries, implement feedback, and ensure that we build a fast, reliable, and truly delightful payment experience for each respective market.”
On November 9, 2023, the Nigerian fintech startup launched a direct debit product that would allow Nigerian businesses to charge customers’ bank accounts directly. Additionally, in October 2023, the company launched Paystack Virtual Terminal, a new product that enables physical stores to accept and confirm bank transfers.
