Quidax, a Nigerian cryptocurrency exchange, has laid off at least 20 employees, accounting for 25% of its workforce.
This comes just a few months after the company spent millions of naira on season seven of Big Brother Naija, Nigeria’s most popular reality TV show.
The company first slashed its workers’ salaries by 30% in August this year, while the layoffs came as the last straw.
Coming at a time when the crypto industry is still battling with the effects of the collapse of the world’s second-largest crypto Exchange, FTX, Quidax clarified that its layoffs have no connection with the FTX saga, as it has “no relationship with FTX”.
Economic downturn: The company, however, blamed its woes on the economic downturn. In a statement announcing the layoff, the company 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.”
While assuring that its customer funds are safe and insured through an insurance cover from its custody partner, Quidax said it remains in business and is “not going anywhere, anytime soon.”
Severance packages: For the sacked staff, the company said it would continue to provide support for them by giving them a severance package and providing health insurance for affected employees and their families.
It added that affected employees will also be paid for the notice period they would have had to give if they had resigned. “We will connect affected employees to our network of companies and founders within the fintech space,” it said.
When the going was good: Back in March this year, Quidax had unveiled the popular showbiz personnel, Don Jazzy, as its Ambassador in a multimillion-naira contract. The company followed suit in July by being one of the sponsors of BBNaija Season 7, where it also doled out N10 million plus a Dubai trip to viewers of the show.