Nigeria’s prominent fintech startup, Paystack, has announced a reduction in its workforce, affecting 33 employees. This move marks a strategic refocusing of the company’s efforts on the African continent.
Refocusing on core markets
Paystack, a leader in the Nigerian fintech space and a Stripe Inc. unit, is trimming its workforce in Europe and the United Arab Emirates. This decision aligns with the company’s strategy to concentrate more on its African operations. CEO Shola Akinlade, in a recent statement, emphasized the need to “localize costs and get closer to customers” as a driving factor behind this change. Notably, no team members in Nigeria or other African markets where Paystack operates will be impacted by this downsizing.
Founded in 2015, Paystack has been a trailblazer in the digital payments sector. The company’s acquisition by Stripe Inc for $200 million in 2020 was a significant milestone, highlighting the growing interest in African fintech. The strategic shift to refocus on African markets comes as Paystack expands into several new countries on the continent, including Côte d’Ivoire, Egypt, and Rwanda. This expansion is a testament to the burgeoning fintech scene in Africa, where a vast unbanked population and increasing digital adoption present unique opportunities.
Supporting transitioning employees
In light of the workforce reduction, Paystack has committed to supporting the affected employees. The severance package includes four months’ salary, accelerated equity vesting, and extended health insurance coverage. Akinlade’s commitment to helping these employees find new opportunities reflects a compassionate approach to corporate restructuring.
This workforce reduction places Paystack among several Nigerian fintech startups that have had to adjust their operations due to various market pressures, including the recent downturn in the cryptocurrency market.
