African payment company Paystack has reduced its operations outside Africa, reducing its workforce in Europe and Dubai. This decision comes as part of a streamlining effort, particularly in markets where the company has previously hired technical roles to support its core operations in Africa.
Paystack has cut its workforce by 33 employees, co-founder and CEO Shola Akinlade said in a tweet on Thursday. Following its acquisition by US-based fintech Stripe, Paystack expanded its geographic presence by establishing offices in Accra, Cape Town, Dubai and Nairobi. This expansion was complemented by the recruitment of staff in Europe through remote operations and the establishment of an engineering hub in Dubai. Paystack already had offices in Lagos and San Francisco before these developments.
Paystack currently maintains an operational footprint in four markets: Nigeria, Ghana, Kenya and South Africa. The company, characterized by its lean operation, has experienced a modest expansion in staff strength, contributing to a number of product launches over the past three years. Notable developments include the introduction of a app for Shopifylaunch a terminal device and, more recently, adding a direct debit option. Paystack has also developed integrations with global software and payment solutions, notable examples being ApplePay. The company is undergoing private beta testing in Ivory Coast, Egypt and Rwanda as part of its strategic expansion efforts.
But despite progress on these fronts, the Stripe subsidiary, which has more than 150 employees per LinkedIn, recognizes that it’s time for a change in strategy. Stripe itself laid off 14% of its team last year and a few dozen in June.
“We are changing our operating model to prioritize locating team members in the markets we serve, to localize costs and get closer to customers,” said Akinlade. The CEO noted that those affected will receive a severance package that includes four months’ salary, accelerated stock vesting and health insurance that will be extended by three months.
“These are some of the most talented people I have ever worked with and my aim is to ensure that everyone finds new roles as quickly as possible. I am personally happy to vouch for each and make reference calls as needed,” he tweeted, leaving a form for parties interested in hiring the affected Paystack employees whose roles span software engineering, legal and compliance, finance, sales and marketing, product design, and human resources.
