Chipper Cash, a Nigerian fintech startup, has recently made headlines with its decision to abolish the roles of 20 workers based in the U.S. and U.K. This move comes as part of the company’s strategy to enhance operational efficiency and move closer to profitability, according to CEO Ham Serunjogi.
Chipper Cash cuts staff in the UK and US
The startup, which focuses on payments, had previously undertaken similar workforce adjustments. In February 2023, Chipper Cash laid off 100 employees, representing 12.5% of its workforce at the time. This action was followed by another round of layoffs involving 50 workers. These measures were attributed to challenging macroeconomic conditions that Chipper Cash had been facing, despite its impressive valuation of $2 billion after a Series C extension round led by FTX.
In a recent update shared through its blog, Chipper Cash’s CEO, Ham Serunjogi, indicated that the responsibilities of the departing 20 employees will be reassigned to teams in some of the startup’s African markets. This strategic decision aligns with Chipper Cash’s goal of maintaining operational efficiency across its expanding footprint.
The acquisition of Zoona/Tilt in the previous year has significantly expanded the firm’s presence, leading to the establishment of more teams and offices across multiple countries. Serunjogi emphasized the importance of balancing operational and cost efficiency, especially in a dynamic market landscape.
Focus on the African market and sustainable growth
Techcabal’s report highlighted that the recent layoffs mark the fourth instance of the firm reducing its workforce within a relatively short period. Before downsizing roles in the U.S. and U.K., the company had implemented a 25% salary cut for its employees. Despite these cost-cutting measures, Chipper Cash reiterated that its business fundamentals remain robust.
Interestingly, alongside the workforce adjustments, Chipper Cash has also opted to suspend its operations in the U.S. Serunjogi justified this strategic shift by emphasizing the startup’s primary focus on African markets rather than international expansion, particularly in the U.S. market. Chipper Cash’s approach underscores the challenges and strategic decisions faced by fintech startups operating in dynamic and competitive environments.
As the company continues to navigate market complexities, its focus on efficiency and market alignment remains central to its long-term success trajectory. The company’s ability to adapt to changing market conditions while maintaining a strong focus on its core markets in Africa reflects a strategic approach to sustainable growth. By reallocating roles to regions with strategic importance and aligning operations with market realities, Chipper Cash aims to strengthen its position as a leading player in the fintech space, poised for sustainable growth and profitability in the years to come.
