Chipper Cash Lays Off Twenty more Staff in the US and UK

Fintech startup Chipper Cash has had to part with another 20 employees in the US and UK, the second time in less than three months for this kind of event.

Just a week ago, Chipper Cash announced that it was suspending its operations in the US.

Shifting Focus: Back to Africa

In a company blog post published on Friday, Chipper Cash affirmed the layoffs, stating that there is a shift towards focusing more on their core African markets.

“Our primary focus has always been on our African markets, where we’ve established some of the most widely used consumer financial products,” said Ham Serunjogi, CEO of Chipper Cash, in an email.

This move comes after a tough couple of months for the company.

In December 2023, the company laid off 15 employees in the US and UK and also introduced a 25% salary cut for its remaining staff in those regions.

Despite these measures, at that time, Chipper Cash insisted that its business was “performing very well.”

US Operations on Hold

The recent pause in US operations makes it more evident that Chipper Cash is refocusing on Africa.

The company states that while the US market was never really a core focus and only “a very small” number of users were affected by this suspension, it is still a big change in strategy.

“We offered the US product as an extension of our African services,” Serunjogi explained.

Chipper Cash implored the customers in the US to quickly take back their money once it is suspended.

Effect on Employees

The recent round of layoffs has at least two executives affected, according to sources familiar with the matter.

This news comes after December cuts that were mainly focused on the company’s engineering team.

Also, VP of Revenue at Chipper Cash posted the news on LinkedIn showing his sadness about the talent lost.

He pointed out that a geographically diverse pool of employees was affected spanning the US, UK, South Africa, Nigeria and Kenya.

Read More: Sony Lays Off Staff in its PlayStation Division

Financial Pressures and Declining Valuation

Analysts feel that these occurrences at Chipper Cash may be connected to recent financial strains.

The company’s valuation which once hit $2 billion, was reportedly downgraded to $1.25 billion by FTX, a major cryptocurrency exchange.

This trend is symptomatic of a wider problem in the fintech industry where several companies have seen similar staff reductions.

Looking Ahead: The Future of Chipper Cash

While Chipper Cash is grappling with these challenges, its future course remains uncertain.

The company’s choice of focusing on its African market implies the belief in the continent’s long-term growth potential in terms of its financial technology sector.

However, recent layoffs do not bode well for the company’s overall financial health and ability to execute its strategic vision.

One thing is certain: Chipper Cash is in the middle of a remarkable metamorphosis.

Time will only tell if this change in focus would result in a prosperous and sustainable future for the African fintech leader.