Chipper Cash, the Nigerian fintech startup, has laid off 20 employees based in the US and UK.
Chief Executive Officer (CEO), Ham Serunjogi cited the decision as part of the company’s strategy to boost operational efficiency and move closer to profitability.
The latest round of layoffs is aimed at positioning Chipper Cash for positive cash flow by the first half of the year. Only employees in the US and UK were affected this time, according to Serunjogi, who emphasized the move’s significance in achieving profitability and financial stability by mid-2024.
This isn’t the first time Chipper Cash has downsized its workforce. In February 2023, the company let go of 100 employees, followed by another round of layoffs affecting 50 workers. These actions were attributed to challenging macroeconomic conditions despite the company’s high valuation and successful funding rounds.
Mr Serunjogi indicated that the roles of the departing employees would be transferred to Chipper Cash’s African markets. He stressed the importance of maintaining operational efficiency, especially after the acquisition of Zoona/Tilt, which expanded the company’s presence across multiple countries.
Techcabal’s report highlights that these layoffs mark the fourth reduction in Chipper Cash’s workforce in just over a year. Before cutting jobs in the US and UK, the company had implemented a 25% salary reduction. However, the firm remains optimistic about its business performance despite these adjustments.
In addition to workforce reductions, Chipper Cash has ceased operations in the U.S., aligning with its focus on African markets. Serunjogi reaffirmed the company’s commitment to prioritizing African expansion over ventures in other regions.