Paystack, the African payments company, has scaled back its operations outside of Africa, resulting in a reduction in its workforce in Europe and Dubai. This decision comes as part of a streamlining effort, especially in markets where the company previously hired technical roles to support its main operations in Africa.
In a cost-cutting move, Paystack has reduced its workforce to 33 employees, co-founder and CEO Shola Akinlade emphasized in a tweet on Thursday. Following its acquisition of US-based fintech Stripe, Paystack expanded its geographic presence by establishing offices in Accra, Cape Town, Dubai, and Nairobi. This expansion is supported by the recruitment of staff in Europe through remote operations and the establishment of an engineering hub in Dubai. Paystack already maintained offices in Lagos and San Francisco prior to these developments.
Paystack currently maintains an operational footprint in four markets: Nigeria, Ghana, Kenya, and South Africa. The company, characterized by its stable operation, has experienced a moderate expansion of the staff strength that has contributed to a series of product releases in the last three years. Notable developments include the introduction of an app for Shopify, the launch of a virtual terminal, and, most recently, the addition of a direct debit feature. Paystack also makes integrations with global software and payment solutions, with notable examples being ApplePay. The company is currently undergoing private beta testing in Ivory Coast, Egypt, and Rwanda as part of its strategic expansion.
However, despite the progress on these grounds, the subsidiary of Stripe, which has more than 200 employees per LinkedIn, recognizes that it is time to change the strategy. “We have changed our operating model to prioritize finding team members within the markets we serve, to localize costs and be closer to customers,” Akinlade said.
For those affected, the chief executive said they will receive a severance package that includes four months’ salary, accelerated equity vesting, and extended health insurance for three months. “These are some of the most talented people I’ve ever worked with, and my goal is to make sure that everyone finds new roles as quickly as possible. I personally enjoy vouching for each one and making those call reference if necessary,” he added in the tweet while leaving a shape for parties interested in hiring the affected Paystack employees, whose roles are cut across software engineering, legal and compliance, finance, sales and marketing, product design and human resources.