Nigerian mobility startup Moove has raised over $140 million in funding in 2022, so, it was confusing as to why it was laying off employees, although there has been global tech layoffs going around.
In a statement to clarify its motive, the company confirmed that the layoffs was not because of the upcoming tech financial crisis that has several big names batting down the hatches. Instead, it was due to performance and gross misconduct.
“With regards to those employees dismissed on the grounds of gross misconduct, it is important to highlight that such breaches of policies and gross misconduct can have serious consequences on the livelihoods of Moove customers, and is something that cannot be taken lightly. As such, we enforce a zero-tolerance approach to gross misconduct and remain firmly committed to adhering to this policy across all business areas,” Moove’s statement read as shared by TechPoint Africa.
In addition, the company claimed that it paid affected staff a severance worth three months of their base salary as a gesture of goodwill.
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Sources had claimed that the employees layoff at Moove had come without warning, which is unlike what we have seen in the tech layoffs we have reported so far. So, it makes sense that this was not a strategic move but a disciplinary one.
Although, there were some internal sources that cited a previous email form Moove CEO Ladi Delano where he complained about burning through too much money and the need for drastic actions. There is also the angle of the startup preparing to reduce its efforts in Nigeria, given that the vehicle financing industry is still low yield because of the poverty rate in the country.
The employees were asked to sign non-disclosure agreements (NDAs) and waivers preventing them from taking legal action in the future, which is part of their employment contracts.
Moove Nigerian employees are the only set affected, according to sources. The startup has recently expanded into the UK with 100% EV fleet and other markets like India, the UAE, and Egypt.
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