African fintech startup, Chipper Cash, has laid off employees for the fourth time in a year. The company stated that only a small number of employees were affected by this round of layoffs. This comes amidst a wave of shutdowns announced by various African startups.
Chipper Cash’s first layoff occurred in December 2022, just a year after securing $150 million in funding led by FTX, the failed crypto company by Sam Bankman-Fried.
In the second round, the company let go of over a third of its workforce, including 140 employees, with 15% being Nigerians across different departments.
During the third round in June, key staff members like the COO and Kenya Country Director were affected. In this latest round, the company laid off 15 people across all departments, assuring that no roles in Africa were impacted.
Similar to Chipper Cash, Paystack also laid off 33 staff outside Africa to localize costs. Chipper Cash explained the decision to cut roles outside Africa, emphasizing the need for efficiency in its global organization. The company also reduced the salaries of remaining US and UK staff.
Despite the challenges, Chipper Cash maintains optimism, claiming it is performing well and expects profitability in a few months. The startup faced difficulties after FTX, its leading investor, shut down, and it reportedly considered a sale in March after Silicon Valley Bank, another lead investor, closed.
With a valuation of $2 billion, Chipper Cash’s worth was allegedly halved before FTX’s bankruptcy, possibly impacting its unicorn status.
Related Posts
Klasha Raises An Additional $2 Million To Expand B2B Cross-Border Payment Rails Into China
Moove Expands To Mexico, Extending Global Footprint
