Economic Downturn: Nigerian Crypto Exchange Quidax Lays Off 25% of Its Staff

Nigerian Cryptocurrency Exchange, Quidaxit has fired at least 20 of its employees, which represents 25% of its workforce.

This comes just a few months after the company invested millions of naira in sponsoring the seventh season of Big Brother NaijaNigeria’s most popular reality show.

The company first cut its workers’ wages by 30% in August this year, while the layoffs were the final straw.

Coming at a time when the cryptocurrency industry is still battling the effects of the collapse of the world’s second largest cryptocurrency exchange, FTXQuidax clarified that their dismissals are not related to the FTX saga, since they have “no relation to FTX.”

economic fall: The company, however, blamed its problems on the economic downturn. In a statement announcing the layoff, the company said:

The news continues after this announcement.

  • “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 for a robust post-COVID recovery with growth of at least 5.6%. Things were looking up and we made various plans and projections for growth as a company in early 2022. In 2022, the three largest economies (China, the US, and the Eurozone) experienced reduced growth. This has affected the global economy, which slowed to 3.2% growth.

While ensuring that its clients’ funds are safe and insured through insurance coverage from its escrow partner, Quidax said it remains in business and is “not going anywhere any time soon.”

severance packages: For the laid off staff, the company said it would continue to support them by providing a severance package and providing health insurance for the affected employees and their families.

The news continues after this announcement.

  • He added that affected employees will also be paid the notice period they would have had to give if they had resigned. “We will connect affected employees with our network of companies and founders within the fintech space.” He said.

when things were going well: In March this year, Quidax had introduced popular showbiz personal Don Jazzy as their ambassador in a multi-million dollar deal.

  • 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 trip to Dubai to viewers of the show.

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