Restructuring Push Sparks Job Cuts & Pay Bump At Refocused Flutterwave

By  |  June 24, 2024

African fintech giant Flutterwave is undergoing a restructuring effort, letting go of 24 employees (around 3% of its workforce) as it focuses on its core business areas of enterprise payments and the remittance service, Send App.

The move comes amid Flutterwave’s continued pursuit of an initial public offering (IPO) and follows a spate of attacks by fraudulent actors that, according to various reports, resulted in significant financial losses for the company.

In a blog post announcing the restructuring, CEO Olugbenga Agboola acknowledged the difficulty of the decision but emphasised the need to align resources with strategic goals. “The data and the business is pointing us to a specific direction,” Agboola said. “It would be counterproductive for us not to listen and create the right mechanisms to move faster on the opportunities awaiting us.”

This strategic shift reflects Flutterwave’s prioritization of its core business segments to streamline operations and potentially improve profitability, a key metric for investors ahead of a potential IPO. Agboola underscored this, stating, “Our aim remains to be the payment gateway of choice for enterprise businesses expanding into and across Africa.”

Flutterwave is offering a comprehensive severance package to departing employees, including several months of salary, healthcare benefits, and outplacement services. For remaining employees, the company is implementing a new compensation structure with increased base salaries for a majority of staff and a performance-based bonus system. Agboola highlighted, “The introduction of the new base and bonus compensation structure… is a strategic move to ensure we are aligning our compensation strategy with employee needs and market trends.”

The restructuring news comes as Flutterwave grapples with ongoing security concerns. However, the recent announcement of its partnership with Nigeria’s anti-graft body, the Economic and Financial Crimes Commission, on a cybercrime-fighting initiative, as well as the resolution of regulatory squabbles in Kenya, could restore some confidence.

Since launching in 2016, Flutterwave has swiftly expanded, now operating in ~30 African countries. Led Co-Founder/CEO by Olugbenga Agboola, the startup has closed substantial funding rounds, with a February 2022 round tripling the company’s valuation to USD 3 B.

Headquartered in Lagos and San Francisco, Flutterwave has garnered investments from notable venture capital firms like Tiger Global. The company collaborates with industry giants including Alibaba’s Alipay, Uber, and Netflix.

While Flutterwave faces challenges, the company also boasts ambitious growth plans. Agboola mentioned hiring for senior roles, operationalising newly acquired licenses, and expanding services for both its remittance and enterprise arms. The company also aims to improve its offerings for developers, a crucial community for its ecosystem.

Overall, Flutterwave’s restructuring reflects a company undergoing a transition. As it pushes for an IPO and global expansion, it must simultaneously address security concerns and navigate a competitive landscape.

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