In a recent announcement, Paystack, the prominent fintech giant, disclosed a significant restructuring initiative that entails a reduction in its workforce in Europe and the United Arab Emirates. Shola Akinlade, the co-founder and CEO, shared this decision in a heartfelt statement.
Paystack is set to part ways with approximately 33 employees from its European and UAE operations as part of this strategic move. This shift in operational focus aims to prioritize local talent and enhance proximity to the markets they serve.
Over the past three years, Paystack has embraced an inclusive hiring strategy, tapping into global talent pools and even establishing an engineering hub in Dubai. However, according to Shola, the evolving business landscape has prompted a change in the operational model, emphasizing the importance of team members being closer to the markets they serve.
Shola Akinlade elaborated on this transition, stating, “We’re changing our operating model to prioritize locating team members within the markets we serve, to localize costs and get closer to customers.”
To minimize the impact of this restructuring on affected employees, Paystack has devised a comprehensive severance package. This package includes four months’ salary, accelerated equity vesting, a three-month extension of health insurance, and additional provisions to support the affected individuals.
Expressing appreciation for the departing employees, Akinlade underscored their exceptional talent and commitment, stating, “These are some of the most talented people I’ve ever worked with,” and reaffirming his commitment to supporting their transition. He also emphasized his willingness to vouch for each individual and provide reference calls as needed.
To facilitate the transition of the affected workforce, Paystack has invited companies seeking exceptional talent to express their interest in potential hires through a dedicated channel provided by the company.
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Known for its focus on tailored payment solutions, Paystack has expanded its operations in Ghana, Nigeria, Kenya, and South Africa, boasting a team of 250 individuals known as ‘Stacks.’ Despite the recent workforce reduction, Paystack remains committed to its mission of building a growth engine for modern businesses across the continent.
While the company has expanded beyond Africa in recent years, the restructuring may suggest a reevaluation of its expansion strategy in light of global economic conditions.
As Paystack navigates through this restructuring phase, it remains steadfast in its vision to drive innovation and excellence in the fintech industry, leveraging technology to transform financial services across Africa and beyond.