Flutterwave Lays Off 3% Workforce as it Focuses on Core Business of Payments And Remittance
Flutterwave, a leading African fintech company, has announced a strategic shift in its operational focus to reinforce its core business and expand its growing remittance segment, Send App. This data-driven decision comes at the end of 2023, prompting a reallocation of resources and a significant restructuring of its teams.
Refocusing on Core Strengths
By the end of 2023, Flutterwave made a data-backed decision to recommit its resources to enterprise payments, its primary business focus. Recognizing the increasing opportunities within the remittance market, the company also decided to invest more heavily in its Send App service. This strategic pivot is intended to enhance the company’s ability to connect Africa’s payments landscape with the rest of the world, aiding multinational corporations in their African operations and enabling African businesses to expand globally.
Workforce Restructuring
As part of this strategic shift, Flutterwave faced the difficult decision to transition 24 employees, representing 3% of its workforce. These departing employees, referred to as “Wavers,” were recognized for their hard work and contributions. Flutterwave assured a smooth transition for these employees, offering several support measures:
- Final Payment: An average of three months’ gross salary, based on the country of employment, along with monetized unutilized leave days.
- Education and Training: Continued free access to professional training platforms for 12 months post-transition.
- Career Support: Three months of free outplacement services.
- Stock Options: An additional six-month vesting period for employees with stock options.
- Healthcare: Three months of free healthcare.
- Mental Health: Access to mental health and career coaching services for three months post-transition.
Enhancing Compensation for Remaining Employees
Acknowledging the impact of these changes on remaining employees, Flutterwave is also implementing a comprehensive compensation review to ensure competitiveness and alignment with industry standards. Key elements of this new framework include:
- Base Pay Adjustments: Upward adjustments to base compensation for the majority of employees, based on a thorough market analysis.
- Performance-Based Bonuses: A new discretionary bonus structure tied to individual and team performance, aligned with specific, measurable KPIs.
This strategic move aims to position Flutterwave at the 95th percentile for junior employees and the 85th percentile for senior employees within the industry, ensuring motivation and engagement across the workforce.
Future Growth and Development
Flutterwave’s goal remains to be the premier payment gateway for enterprise businesses expanding within and across Africa. The company plans to enhance its solutions and customer service capabilities, which includes hiring for key senior roles in areas such as risk, compliance, engineering, data, and finance. Additionally, Flutterwave is operationalizing new licenses for Send App, which will enable service expansion to more countries for both senders and receivers.
The company is also committed to improving its enterprise solutions, providing faster and more personalized support. The developer community can expect significant improvements and updates, reflecting the company’s ongoing engagement with internal advocates.
