Over the weekend, we learned that Chipper Cash, a payments firm that has been operating for more than four years and was valued at more than 2 billion USD at one point, laid off a third of its workforce. This is the second time the company has reduced its workforce, following the December 2022 layoffs that affected more than 12 percent of its staff (50 employees).
We did not learn what motivated the recent layoff, but according to people with knowledge of the matter, the firm has been experiencing what other tech-based startups have been reporting for a while: that investor confidence worldwide is currently low and the venture capital markets remain virtually shut.
According to insiders, CEO Ham Serunjogi shared a message with his staff that underlined the severe challenges that Chipper Cash is currently facing. Ham reportedly justified the layoffs by pointing out that the economic climate has not shown any meaningful improvement, and there is considerable uncertainty about the future.
He emphasized the importance of agility and responsiveness for Chipper, given the current environment, and stressed the need to make any required changes to ensure sustained long-term success. He also noted that Chipper must continually adapt to the present economic landscape to stay ahead of the competition.
But that’s not all. Reportedly, Chipper will now exercise extreme caution with its resources and prioritize the fundamental aspects of the business. This will involve streamlining efforts to focus on core markets and products, in order to drive profitability and thrive in those areas.
As a result, the new strategy requires a smaller team to sustain the business. That’s why a third of the workers, including the entire crypto department, have been laid off, and other functions are being managed by a single staff member.
Chipper will offer departing employees a comprehensive severance package, extended medical coverage, and payouts for any unused leave, for those who are eligible.