Chipper Cash, an African cross-border payment platform, laid off about 100 people again

On February 20, Chipper Cash, an African cross-border payment platform, laid off 12.5% of its staff ten weeks ago, and nearly one third (about 100) of its staff on Friday, including human resources, marketing, pricing, products, analysis, user experience, research, and legal services.

Interpretation of this information:

The African cross-border payment platform, Chipper Cash, recently laid off almost one third of its staff on Friday, which included various departments such as human resources, marketing, legal services, and more. This decision comes ten weeks after the company laid off 12.5% of its staff in February of this year.

There are multiple factors that could have led to such a large-scale layoff. Firstly, the COVID-19 pandemic has significantly impacted the global economy, leading to decreased revenue for many companies. This may have forced Chipper Cash to reevaluate their financial situation and make necessary cuts.

Secondly, the competition in the cross-border payment market has been increasing. The rise of companies such as PayPal, TransferWise, and Stripe has led to a crowded market, making it challenging for smaller companies like Chipper Cash to compete. As a result, the company may have decided to cut costs to remain competitive and survive in the market.

Lastly, Chipper Cash recently faced a lawsuit from a shareholder who claimed that the company’s founder committed fraud by misrepresenting the company’s financial situation to investors. This lawsuit could have impacted the company’s finances, leading to the decision to lay off employees.

In conclusion, it is evident that Chipper Cash’s decision to lay off employees could be due to a combination of factors such as the COVID-19 pandemic, increased competition, and a potential legal issue. However, it is uncertain how this will affect the company’s future and if they will be able to recover from this setback.