Ayodeji Ayenuwa
In a strategic realignment move, Nigerian fintech company Paystack, acquired by Stripe in 2020, is trimming its global workforce, with a particular focus on reducing operations outside of Africa.
CEO Shola Akinlade announced the decision on Twitter, stating, “We’re changing our operating model to prioritize locating team members within the markets we serve, to localize costs and get closer to customers.”
The restructuring, affecting 33 employees primarily in Europe and the UAE, signifies a shift in Paystack’s approach, reflecting broader industry trends amid the ongoing reset in global tech markets.
Akinlade emphasized the company’s commitment to mitigating the impact on affected employees, stating, “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.“
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As part of the initiative, Paystack is offering a comprehensive severance package, including four months’ salary, accelerated equity vesting, and a three-month extension of health insurance coverage.
This move aligns with the company’s goal to enhance the localization of costs and foster closer proximity to customers within its operational markets.
Founded in 2015, Paystack emerged as a pioneer in Nigeria’s fintech landscape, providing modernized payment infrastructure for African businesses.
Following its acquisition by Stripe, Paystack expanded its presence into new markets, including South Africa, Egypt, Ivory Coast, and Rwanda.
However, the current challenges in the African startup scene, characterized by a funding slowdown, have prompted Paystack, and other companies, to make tough decisions.
The decision to downsize echoes actions taken by Stripe, Paystack’s parent company, which reduced its workforce by 14% in the previous year.
The broader tech industry has witnessed over 240,000 job losses in 2023, reflecting a cautious investor sentiment in a subdued market environment.
Techrectory with Agency Report.
