Chipper Cash Again Downsizes Workforce, in A Fourth Consecutive Round of Layoffs
African Fintech startup Chipper Cash, has once again downsized its workforce, as the company has reportedly slashed 15 jobs, in a fourth consecutive round of layoffs.
Chipper Cash disclosed that the recent layoffs were necessitated, due to a minor restructuring, and only a small number of roles were impacted.
The company wrote,
“We constantly look to ensure we have as much efficiency as possible within our global organization, and only a small number of roles were impacted by the minor restructuring. No roles in Africa were affected, as this year, we have expanded teams on the continent. Our business is doing very well and will be profitable in a few months”.
In addition to the layoffs, Chipper Cash is reported to have reduced the salaries of its remaining employees in the UK and US, but the company did not provide context on its salary adjustments.
The latest job cuts at the fintech startup, comes six months after the company cut nearly a dozen roles in a third round of layoffs, which saw its Chief Operating Officer, Alicia Levine laid off.
The third round of layoffs was part of the company’s previously announced restructuring plan, to focus on core products and markets.
Recall that Chipper Cash has faced financial pressure after two of its prominent investors FTX and Silicon Valley Bank collapsed. The company reassured users and investors that its business was safe, however, the company saw its valuation slashed from $2 billion to $1.25 billion.
In August 2023, it also raised roughly $25 million in convertible debt, says a person familiar with the financing–debt that will convert to equity at a $450 million valuation in the event of an acquisition or a new fundraising.
Notably, Chipper Cash fourth round of layoffs is occurring as the global fintech space, has been impacted by Economic headwinds, which have seen companies’ valuations negatively impacted, spurring mass layoffs across the industry.
