Nigerian crypto startup Quidax has laid off 20% of its workforce, citing unfavorable macroeconomic conditions.
The startup however clarified that its layoff is not related to the recent FTX upheaval, which has no doubt negatively impacted the crypto industry.
Quidax lay off some members of its workforce coming months after the crypto startup sponsored the Seventh season of the Nigerian reality show, Big Brother Naija.
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The startup joins the likes of other Nigerian startups such as Wave, Vezeeta, SWVL, Kuda and 54 gene that have laid off some members of its workforce this year.
In a statement, the startup said,
“We have some difficult news to share with our community today. Following the economic downturn around the world, we have had to make some tough decisions at Quidax.
“We had to say goodbye to 20% of our exceptionally talented people. We deeply value our people and it has not been an easy decision to make.
“In June 2021, the global economy was on track to stage a solid post-COVID recovery with at least a 5.6% growth.
“Things were looking up and we made several plans and growth projections as a company at the start of 2022. In 2022, the three largest economies – China, the USA, and the Euro area – saw reduced growth. This has affected the global economy, which slowed to 3.2% growth”.
Laid off employees at the startup will be given a severance package coupled with a health insurance package for them and their families.
Quidax further went ahead to douse the tension of its customers by assuring them that their funds are safe as they are insured through an insurance cover.
This year, the crypto startup has made several moves to support its vision, which included the signing of Mavin records founder and CEO Michael Collins popularly known as ‘Don jazzy’ as its brand ambassador.
In September, the company also announced the launch of a US Dollars (USD) savings feature which enables customers to earn up to 10% annual interest when they save in USD with interest paid daily.
Launched in 2018, the startup has processed over 3.2 billion dollars worth of transactions since its launch and has grown its customer base from 50 customers in 2018 to over 400,000 customers across 72 countries today.