African payments giant Flutterwave has laid off about 30 employees, which constitutes approximately 3% of its workforce. This move comes three months after the company announced a strategic shift to focus on its two biggest revenue drivers: remittances and enterprise solutions. As part of this repositioning, Flutterwave shut down its consumer-facing product, Barter, in March.
“After thoroughly analyzing our strategic priorities and refocusing on enterprise customers and remittances, we concluded that some roles within the organization are redundant,” Flutterwave said in a statement. This decision underscores the company’s commitment to aligning its workforce with its long-term strategic goals.
During a town hall meeting on Monday afternoon, the company informed employees about the layoffs, according to two individuals with direct knowledge of the situation. One of the sources revealed that the roles affected by this reduction are primarily connected to products and services that the company is no longer pursuing.
Flutterwave has pledged to support the affected employees by offering severance packages. “We will pay an average of three months of gross salary, depending on the country where the employee is based,” the company stated. Additionally, Flutterwave will compensate employees for their unused accrued leave days.
This strategic shift highlights a significant transformation in Flutterwave’s business model. In October, the fintech firm publicly stated that enterprise solutions were its largest revenue driver. Conversely, retail products contributed minimally to the company’s revenues. This pivot necessitated a reevaluation of its workforce structure to ensure alignment with its future business strategy.
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“Since our founding eight years ago, we have not had to implement a workforce reduction plan. However, it became a necessary step in this instance to align our current resources with our go-forward strategy and improve our operational efficiency,” the company explained.
Flutterwave has also been making notable changes at the executive level. Following the reshuffling of some of its C-suite employees in 2024, the company revived discussions about a potential public listing—a move that had been postponed in 2022 and 2023. CEO Gbenga Agboola highlighted the company’s renewed focus on preparing for an initial public offering (IPO) in an interview with Semafor in April 2024. “Right now, our goal is to be IPO-ready, ensuring we have the right corporate governance in place, making sure we are operating well,” Agboola said. “We want to be a long-term company in Africa, for Africa – and so the goal is building the right infrastructure to be here for the next ten-plus years.”
Flutterwave’s strategic realignment and executive changes signify its commitment to long-term growth and stability in the African market. By focusing on enterprise solutions and remittances, the company aims to solidify its position as a leading player in the fintech industry across the continent.
