Flutterwave, a leading African fintech startup headquartered in Lagos, Nigeria, has announced layoffs affecting 3% of its workforce, totaling 24 employees. This decision comes in the wake of an alleged $7.2 million loss due to a security breach that occurred two months prior. The company, renowned for its cross-border payment solutions across the continent, cited a strategic realignment of resources towards its core business of enterprise payments and its burgeoning remittance service, Send App, as the catalyst for the layoffs.
In an official statement, Flutterwave CEO Olugbenga Agboola expressed the company’s commitment to optimizing opportunities in these key areas. He acknowledged the difficulty of the decision while emphasizing the need to adapt to the evolving fintech landscape. Agboola also commended the departing employees, known as “Wavers,” for their dedication and contributions to the company’s growth.
To facilitate a smooth transition for the affected employees, Flutterwave has implemented a comprehensive severance package. This includes an average of three months’ gross salary based on the employee’s location, monetization of unused leave days, continued access to professional training for 12 months, free outplacement services for three months, accelerated vesting of stock options, three months of free healthcare, and continued access to mental health and career coaches.
The layoffs follow a security incident reported in April 2024, during which Flutterwave detected unusual activity on one of its platforms used by a limited number of customers. Although the company asserted that customer funds remained secure due to prompt action taken to thwart the attempted network intrusion, an online media platform, Tech Cabal, reported an alleged loss of $7.2 million. Flutterwave promptly notified law enforcement agencies, including the Nigerian Police Force, and its regulator, the Central Bank of Nigeria (CBN), about the incident.
Furthermore, Flutterwave announced a company-wide compensation review in response to recent employee feedback and market trends. The revised compensation structure aims to enhance competitiveness by adjusting base pay and linking bonuses directly to individual and team performance based on measurable key performance indicators (KPIs).
Flutterwave’s challenges mirror those faced by other players in the Nigerian fintech sector, which has witnessed a surge in cybercrime. MTN, Africa’s largest mobile network operator, reported losses of N10.5 billion to cybercriminals in 2022, while Access Bank, a leading Nigerian bank, filed lawsuits to recover funds lost to hackers. These incidents underscore the growing threat of cybercrime in the region and the urgent need for robust security measures.
Despite these setbacks, Flutterwave remains steadfast in its pursuit of growth and innovation. The company has actively been recruiting for key senior roles in risk, compliance, engineering, data, and finance to bolster its workforce and enhance its capabilities. Moreover, it is expanding its remittance service, SendApp, to new markets and refining its enterprise solutions to deliver faster, more personalized support.