Flutterwave, the Africa-focused fintech unicorn, has reduced its workforce in Kenya and South Africa by 50% as part of a strategic cost-cutting effort. The move is seen as a step toward bolstering profitability in preparation for a potential public listing. This restructuring follows a smaller 3% company-wide layoff less than a year ago, signaling a shift in the firm’s operational priorities.
Departments Hit by Staff Cuts
The most affected divisions include compliance, legal, and human resources, according to insiders familiar with the company's internal decisions. In Kenya, the workforce dropped from around 20 employees to fewer than 10, while South Africa saw a significant reduction, particularly in the sales department. The layoffs began in March 2025 and were confirmed by the company as part of a broader strategic review.
Market Focus and Cost Rationalization
Sources close to the company say the decision was influenced by a desire to focus on lower-cost and higher-return markets, with Nigeria emerging as the primary beneficiary. Despite eliminating roles in Kenya and South Africa, Flutterwave is now hiring for similar positions in its Nigerian offices. This internal restructuring highlights a deliberate pivot to consolidate operations where the company enjoys greater market strength and regulatory traction.
Departures Signal Strategic Retreat
The layoffs in Kenya included high-profile exits such as Leon Kiptum, former regional manager for East Africa, and Saruni Maina, associate vice president for stablecoins. Both had joined Flutterwave in June 2023 during an ambitious expansion phase in the region. Their departure underscores a possible retreat from the aggressive growth strategy previously pursued in East Africa.
Balancing Cuts with Rewards
Despite the cuts, Flutterwave insists it continues to recognize performance within its remaining teams. In a statement, the company confirmed that bonuses and promotions were issued to high-achieving staff during the same cycle. It emphasized that changes were made based on a “performance and strategy-led review,” asserting that realignment is necessary for long-term success.
Regulatory Goals Still on Track
The company’s downsizing comes at a time when Flutterwave is actively seeking regulatory approvals in both affected countries. In Kenya, it is in the process of securing a Payment Service Provider (PSP) licence after receiving name approval from the Central Bank of Kenya in 2023. Meanwhile, in South Africa, which presents a more mature financial market, Flutterwave has yet to receive similar regulatory clearance.
Vision for Sustainable Growth
Flutterwave maintains that these operational changes are in line with its broader ambition to become a disciplined, enterprise-focused firm. The company has consistently reiterated its commitment to “sustainable growth, profitability, and long-term value creation.” By reducing costs and concentrating resources in more stable environments, Flutterwave appears to be positioning itself for a leaner, more focused path to profitability.
IPO Remains a Central Objective
Having last raised $250 million in a Series D round in early 2022, Flutterwave has since prioritized operational discipline over aggressive expansion. CEO Olugbenga Agboola indicated earlier this year that the company would only pursue an IPO once it reached profitability. These recent measures suggest that Flutterwave is tightening its operations to align with investor expectations ahead of a potential listing.
Flutterwave’s workforce reduction in Kenya and South Africa marks a significant recalibration of its pan-African ambitions. While the layoffs reflect a sobering departure from prior expansionary efforts, they underscore the company's shift toward operational efficiency and financial readiness. As Flutterwave narrows its focus and optimizes for profitability, its vision of becoming a publicly traded African fintech leader remains intact though clearly more measured in its approach.
Source : Techcabal