Just one week after the banking service Chipper Cash suspended its operations in the United States, more than 20 employees from branches in Britain and America have been laid off.
According to an inside source, the layoffs affected every section of the financial entity, as two executives were reported to be laid off by the company.
At the moment, the United States team only consists of the Chipper Cash CEO, Ham Serunjogi, his siblings, Nuwa Serunjogi and Terifo Serunjogi, and the Co-founder Maijid Moujaled, with brother Ryan Moujaled.
Although the financial entity claims that the business is going well, its recent activities show a different story.
Looking at the 2023 fiscal year overview, the financial entity passed through four rounds of company-wide layoffs. The final round of the 2023 layoffs in December saw the exit of 15 employees, including the COO, Alicia Levine, and its director, Loen Kiptum of the Kenyan branch.
While Chipper Cash was notifying its American customers to withdraw any available funds from their accounts, the financial entity began slashing its US and UK employee’s salaries by 25%. In addition, the US Staff can only work for four days a week.
Following the recent activities of Chipper Cash, the financial entity is now focusing its attention on its African market, consisting of Nigeria, Uganda, Ghana, and Rwanda.
The reason for the pullout from the European and American markets is the failing expectations of profitability in three months of operating in the market.
The company, once valued at $2 billion, has faced challenges due to the global economic slowdown and dwindling venture capital funding in the past two years, impacting its market operations.
Despite raising $300 million through various series of funding rounds between 2019 and 2021, the company experienced a concerning monthly cash burn rate of $7 million, as reported by a reliable source.