Flutterwave Sacks Workers After Hackers Divert N11 Billion From Company’s Account

Flutterwave Sacks Workers After Hackers Divert N11 Billion From Company’s Account

  • Flutterwave, a startup in payment technology, has let go of twenty-four workers, or 3% of its personnel
  • The company's CEO said the move is part of its strategy to realign and capitalise on opportunities in its core business segments
  • He added that the affected employees will receive some benefits depending on the nation in which they are employed

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

A payment technology startup, Flutterwave, has laid off twenty-four employees, or three percent of its workforce.

Flutterwave sacks workers
Flutterwave CEO, Olugbenga Agboola, addresses decision to sack some workers. Photo Credit: Flutterwave, Image Source RF/Cadalpe
Source: Getty Images

Flutterwave's CEO, Olugbega Agboola, announced this in a statement released on Monday.

Agboola claims that the action is a component of the company's plan to reorganise and effectively take advantage of the prospects in its main business divisions.

Read also

Labour speaks on time new minimum wage act will be ready

He added that the company is committed to doing more with its expanding remittance sector, "Send app."

He also mentioned that the company has made a data-driven decision to reallocate resources to its core business, enterprise payments.

Agboola said:

“Consequently, we’ve made the difficult decision to support the transition of 24 Wavers accounting for 3% of our workforce,” Flutterwave said.
“These Wavers are some of the most hardworking people you’d meet. We put in the work and I can confidently say that at Flutterwave, we have a competent workforce where everyone actively contributes.
“But once the data and the business is pointing us to a specific direction, it would be counterproductive for us not to listen and create the right mechanisms to move faster on the opportunities awaiting us.”

Read also

Dangote unlikely to deliver fuel in July as regulator reacts to claim of bringing down refinery

Affected workers to get benefits

Agboola further said an average of three months gross salary, depending on the country where the employee is based, will be paid.

He added:

“We will also be monetising your unutilised accrued leave days. You will continue to have free access to our professional training platform for 12 months after your transitioning."
“We will be providing you with free outplacement service for 3 months. For Wavers with stock options, we will support you with an additional vesting period of 6 months.
“You will have 3 months of free healthcare. You will continue to have access to our mental health and career coaches for 3 months post transitioning.”

The CEO announced that there will be a review of compensation for all remaining staff. This comprises a new performance-based bonus structure linked to individual and team performance criteria, as well as a wage-based increase for the majority of employees that is in line with the market.

Read also

After Kano, ShopRite announces plan to shut down another branch in Abuja, gives reason

Agboola stated that a careful examination of market trends and recent employee input were the reasons behind this.

Meanwhile, Flutterwave announced that it is investigating methods to customise its enterprise payment solutions and is bringing its remittance service, SendApp, to additional regions.

Flutterwave loses N11 billion to security breach

Legit.ng earlier reported that Flutterwave suffered another security breach, allowing unknown persons to divert N11 billion to various bank accounts.

Reports say the hackers illegally transferred the N11 billion (about $7 million) to several accounts in April 2024.

The incident happened one month after the company obtained a court order to recover another $24 million lost to unauthorised PoS transactions.

Flutterwave shuts down creator platform Disha

Legit.ng also reported that from March 31, 2024, Disha, a platform for creators that Flutterwave acquired in 2021, would be temporarily shut down.

The platform allows digital creators to curate, sell digital content, create portfolios and receive payments from their audience globally.

Read also

How the high cost of wigs affect ladies' fashion, Mabel Makun, other celebs lament

The company explained that the decision was necessary to reevaluate its objectives and realign its vision to better serve the creative community.

Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng

Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng