Crypto exchange startup Quidax trims workforce by 20%

Ganiu Oloruntade

Africa-focused cryptocurrency exchange, Quidax has joined the list of African startups that have trimmed down their staff strength after the company laid off 20% of its employees.

This comes barely two weeks after the Nigerian web3 startup, Nestcoin, announced layoffs of some employees due to the recent bankruptcy of FTX. The one-year-old Nestcoin held assets (cash and stablecoins) in the now-defunct crypto exchange to manage operational expenses.

But TechCabal reports that Quidax, in a statement on Thursday, said its decision to cut staff count was in response to unfavourable macroeconomic conditions. Earlier in August, the company slashed employees’ salaries by 30% and team leads’ by 50% for three months.

“We’ve observed what’s happening with the global economy and we know that now is not the time to just chill and see how things go. Instead, it’s time to be proactive. Our priority is making sure that even if things get worse globally and in the crypto market, we can weather the storm and still provide value to our customers. As a result, we’ve had to scale down a couple of things, including our workforce,” the statement reads in part.

Quidax CEO, Buchi Okoro.

The company’s CEO, Buchi Okoro, disclosed that it is a “difficult time for Quidax and our internal organization.” The affected employees will be offered a severance package and support in their transition, per the statement.

“We’ve been privileged to work with people who light up any room with their personalities, brilliance, and hard work. If the tides turn, these are people we would be eager to rehire. We can boast that they are more than capable of doing a great job anywhere,” the statement reads.

Founded by Buchi Okoro Chief Executive Officer), Morris Ebieroma (Chief Information Officer) and Uzo Awili (Chief Technology Officer), Quidax is an African-founded cryptocurrency exchange that makes it easy for users to buy, sell, store, and transfer cryptocurrencies.

As of May 2021, the company has recorded a total volume of $3.2 billion in transactions in less than three years of operation. The company also raised $3 million in funding with the launch of its QDX platform.

It recently unveiled popular Nigerian record producer Don Jazzy as its brand ambassador and was one of the headline sponsors of the seventh season of BBNaija; Level up to engage and entertain the housemates.

Read also: Crypto Exchange platform, Quidax unveils Don Jazzy as brand ambassador.

The company’s statement on the layoffs further said, “One quality that so many companies in our industry have is resilience. Crypto itself is resilient. 14 years ago, people laughed at the concept of bitcoin. Ten years ago, what ethereum was building sounded like a fairytale. But today, they are still here. Every now and then, they might change direction, but they are still here solving everyday problems.”

Two months ago, Quidax launched a US Dollars (USD) savings feature that allows its customers anywhere in the world to save in USD from local currencies like Naira or using cryptocurrencies like Bitcoin, Ethereum, and several other cryptos.

Meanwhile, the FTX scandal has tilted the trajectory of the cryptocurrency market and provoked a profound catastrophe in major organizations with funds stuck on the exchange. But experts believe that the ‘death’ of FTX is not the end of cryptocurrency.

Related post: The aftermath of the FTX: Is blockchain doomed to die? 

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