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 Flutterwaves 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 Flutterwaves 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.
