Paystack, a Nigerian fintech startup and a subsidiary of Stripe Inc, has announced a workforce reduction of 33 employees in Europe and the UAE. The move is part of the company’s strategy to concentrate more on its African operations, where it sees more growth potential.
Paystack, founded in 2015, is a leading payment service provider that allows merchants to accept online and offline payments from customers across Africa.
The company was acquired by Stripe Inc, a global payment platform, for $200 million in 2020, in a deal that marked the largest fintech acquisition in Africa.
The acquisition enabled Paystack to leverage Stripe’s resources and expertise to expand into new markets and launch new products.
However, as part of its strategic shift, Paystack has decided to refocus on its core markets in Africa, where it operates in nine countries, including Nigeria, Ghana, Kenya, and South Africa.
The company has also recently launched in Côte d’Ivoire, Egypt, and Rwanda, tapping into the burgeoning fintech scene in Africa, where a vast unbanked population and increasing digital adoption present unique opportunities.
CEO Shola Akinlade said the decision to reduce its workforce in Europe and the UAE was driven by the need to “localize costs and get closer to customers.”
Paystack has committed to supporting the affected employees in light of the workforce reduction. The severance package includes four months’ salary, accelerated equity vesting, and extended health insurance coverage.
Akinlade’s commitment to helping these employees find new opportunities reflects a compassionate approach to corporate restructuring.
