A 20% staff reduction is being implemented by Kenya-based payments startup, Cellulant. The fintech company claims that the restructuring initiative will soon be put into action. Only six months prior, the company let go of numerous workers, accounting for about 30% of its staff, in a move it claimed was made to contain rising operational costs.
Cellulant claims that the company is transitioning to a learner-product-led business in a memo to employees.
We are keen to drive initiatives that will boost efficiency in our operations such as such as business process automation to support our operations in multiple geographies. Will continue to allocate capital in areas that will drive the growth of the business and ensure we remain a market-leading player in the industry.
“The proposed initiatives will lead to a consolidation of key functions and the creation of new roles. These actions will result in the reorganization of select roles and will impact 20% of our current headcount.
“The decisions we have made, tough as they are critical to our future success and being a leader in bringing to the market innovative products and solutions that our customers benefit from.
Cellulant Group
According to Akshay Grover, Cellulant’s CEO, the company is embracing a product-led structure as its anchor for enhanced expansion across the continent.
The CEO further explained that the move was a component of the company’s new organizational strategy, which will see it improve its service offerings in response to changing client needs across the 19 countries in which it does business.
“We remain cognizant of the ever-dynamic operating environment, influenced by many factors not limited to technological changes, consumer needs, and market dynamics,” he added.
The layoff represents the continued trend of startup winddowns in Africa, and most especially, Kenya. The East African country has seen the likes of Zumi, Kune, Skygarden, and more recently Sendy shut down. These have made the issue of layoffs a lighter one.
According to Grover, Cellulant has made great strides to establish itself as a pioneer in the pan-African payments industry. The CEO noted that this was just one of many crucial steps the startup needed to take.
In 2003, Cellulant began doing business in Kenya. Since then, it has expanded to become one of the biggest pan-African payment providers, accepting both online and offline payments. The company operates in numerous industries and has launched several products across Africa. But two layoff rounds in six months is saddening.
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