According to a statement by the ride-hailing company made available to Techeconomy, the recent move stems from operational restructuring, not because of economic or financial distress on Bolt.

Bolt emphasized that it is not undergoing layoffs in the traditional sense, Instead, the company is discontinuing collaboration with a specific group of employees as part of a planned restructuring effort focused on optimizing customer support and operational functions. 

Bolt assured its riders and drivers that the quality of service will not be affected. 

“Bolt has never done and is not doing any layoffs, which implies massively downsizing the team because the company is struggling financially. We have made the difficult decision to discontinue collaboration with 22 employees in Nigeria. This decision comes as we have been going through the process of restructuring a considerable number of customer support and operational processes in the country.

“We have offered the people who will be leaving us severance packages that will support their transition to new career opportunities.

“This decision does not affect the quality of our products for riders and drivers. We see great potential in Nigeria and we will stand by our investment commitments in all our African markets.”

While the decision to discontinue collaboration with these employees was difficult, Bolt maintains its goal of providing exceptional service and optimizing its operations for the long term. 

The company’s focus on efficiency and its continued investment in Nigeria reiterates its confidence in the future of the market. Bolt also acknowledges the impact on departing employees and offers severance packages to support their transition. 

This restructuring will enable Bolt to deliver an even better experience for riders and drivers in Nigeria.

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This decision represents an adjustment in response to economic challenges impacting the company’s operations in the country.

The restructuring effort, according to reports, aims to optimize customer support and operational processes to enhance efficiency and sustainability. 

The company emphasized that this action does not reflect financial struggles but rather strategic adjustments to ensure long-term viability in the market.

The decision to discontinue collaboration with certain employees aligns with Bolt’s plan to ensure accountable business practices and support affected individuals through a transition to new career opportunities. Severance packages have been offered to facilitate this transition.

Concerns about economic factors such as high fuel prices, rising spare part costs, and inflation affecting the ride-hailing industry have been acknowledged by industry sources. These challenges have impacted ride prices and driver earnings, contributing to a broader reassessment of business operations.

Despite these adjustments, Bolt remains focused on Nigeria and its broader investment responsibilities across Africa. The company reaffirms its confidence in the potential of the Nigerian market and emphasizes its focus on delivering quality services to riders and drivers.

This restructuring initiative follows previous reports of workforce adjustments in February 2023. At that time, Bolt underwent a similar process, leading to the reduction of junior and mid-level staff while retaining senior and management roles. The company’s People Manager pointed to operational restructuring as the rationale behind these decisions.

Moving forward, Bolt remains in the dynamic market, serving customers while adapting to changing economic realities. The company’s focus on operational excellence and strategic adjustments is an industry response to challenges within the mobility sector.

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The issue, impacting at least 50 Tingo employees, came into effect in March 2024 after a period of three months where employees weren’t paid their salaries.

In January, CEO Dozy Mmobuosi assured employees in a company-wide call that salaries would be settled within four weeks and appealed for their continued service.

These assurances came despite the Securities and Exchange Commission (SEC) filing charges against Tingo in December 2023 for allegedly fabricating its financial statements.

The SEC investigation revealed a discrepancy between Tingo’s reported financials and reality. While the company claimed to have cash reserves exceeding $461 million, its bank accounts held less than $50 million.

Adding to the confusion, some employees received pay raises just weeks after the SEC charges were filed. These raises ranged from 200% to 400%, according to a company executive.

In March, noting “present realities and uncertainties ahead,” Tingo informed staff via email that they would be sent home temporarily until the company could resume salary payments. 

A high-ranking executive, speaking on condition of anonymity, confirmed the furloughs as a necessary step due to the company’s financial struggles. He elaborated that frozen assets and unpaid debts from vendors further exacerbated the situation.

Tingo Group has not responded to requests for comment regarding the unpaid salaries but instead invited media to a product launch event for its subsidiary, Tingo Foods. This upcoming launch of new beverages has left former employees questioning the company’s priorities.

This incident is the second round of staff reductions for Tingo in 2024. In February, approximately 40 contract workers were abruptly let go without receiving payment for services rendered.

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