The recent acquisition of business banking startup Brass by a group of investors has brought significant changes, including a leaner operational model that resulted in layoffs. While the takeover was initially celebrated as a win for the tech ecosystem, it has led to the departure of several employees, marking a challenging transition for the company.
In March 2024, 16 furloughed employees were laid off following the acquisition, despite previous assurances from Brass’s former management that they would be reinstated. Additionally, key executives, including CEO Sola Akindolu, CTO Emmanuel Okeke, and head of design Tolulope Saba, also exited the company during the transition.
Brass, in a statement, explained that its new operating model emphasizes runway management, necessitating a smaller team. Employees who remained after the restructuring faced further adjustments, with many required to reapply for their roles through evaluations. Approximately 70% of these employees were rehired, while others opted to leave, receiving severance pay equivalent to one month’s salary.
While the company’s product and customer experience remain unchanged, the back-end operations are now under the management of a new entity formed by the investors. Brass has yet to name a permanent CEO and CTO, with interim leadership provided by a mix of former Brass and current Paystack employees.
The restructuring underscores Brass’s commitment to maintaining a sustainable operational model during this period of transition, though it has inevitably caused disappointment and uncertainty for many affected team members. The company aims to stabilize its operations and position itself for long-term success under the new management.
