Nigerian fintech startup Chipper Cash has announced the elimination of 20 positions based in the United States and the United Kingdom. The decision, according to CEO Ham Serunjogi, is part of the company’s ongoing efforts to maintain high operational efficiency and achieve positive cash flow in the first half of 2024.
This recent round of layoffs follows previous workforce reductions, including the retrenchment of 100 workers in February 2023 and an earlier cut of 50 employees. Chipper Cash, which saw its valuation soar to $2 billion after a Series C extension round led by FTX, attributed these actions to challenging macroeconomic conditions at the time.
Serunjogi emphasized that the roles previously performed by the affected employees will be reallocated to other African markets where Chipper Cash operates. He underscored the importance of maintaining operational efficiency, especially following the acquisition of Zoona/Tilt, which expanded the company’s footprint across multiple countries.
“While our focus remains on the African markets, it’s crucial to ensure a high level of operational efficiency and cost-effectiveness,” Serunjogi explained in a statement shared on the Chipper Cash blog.
This latest workforce reduction marks the fourth time Chipper Cash has downsized its staff in just over a year, as reported by Techcabal. Despite salary cuts and layoffs, the company maintains that its business performance remains robust.
Furthermore, Chipper Cash has decided to discontinue its operations in the United States, with Serunjogi emphasizing the company’s commitment to prioritizing African markets. He reiterated that Chipper Cash’s primary focus has always been on serving customers in Africa rather than expanding into the US market.
As Chipper Cash streamlines its operations and doubles down on its core markets, the company aims to optimize its resources and strengthen its position in the rapidly evolving fintech landscape.
