Spleet is set to layoff part of its employees. The layoffs continue hitting tech firms, from big tech down to small tech, no one is left out. And now Spleet is one of the newest entries into the trend.
Spleet to Layoff Employees
Amidst the ongoing trend of workforce reductions spanning from large-scale corporations to smaller enterprises, the phenomenon of layoffs continues to persist. This trend has been noticeable since the year 2022, during which a total of 1,061 companies made the decision to downsize their workforce, resulting in the displacement of approximately 164,969 individuals from their employment positions.
As the trajectory of workforce reductions maintained its upward trajectory, the subsequent year of 2023 witnessed a notable escalation, with the number of affected individuals soaring to 262,682.
Adding to this burgeoning statistic, employees of Spleet, a Nigerian property technology startup, are now poised to contribute to the layoff statistics for the year 2024. According to recent reports, the company has made the decision to initiate workforce reductions, thereby placing the employment status of its personnel in jeopardy.
The Extent of the Impending Layoffs
Notably, the CEO of Spleet, Adetola Adesanmi, refrained from divulging specific details regarding the extent of the impending layoffs, leaving uncertainty lingering regarding the exact number of employees who will be impacted by this decision.
Aligned with the prevailing trend observed among various African startups in recent times, the rationale behind Spleet’s decision to downsize its workforce is attributed to the adverse economic conditions prevailing in Nigeria. The economic landscape of Nigeria has been marred by challenges and uncertainties, leading to financial constraints and operational difficulties for businesses across various sectors.
What You Need To Know About Spleet
Spleet, a startup that garnered significant attention after securing a substantial funding amount of $2.6 million in 2022, specializes in providing innovative solutions for the management of rental properties. Among its key offerings is the facilitation of flexible payment plans for tenants’ house rents, alongside streamlining the rent collection process for landlords.
Challenges Facing Spleet
However, amidst the prevailing economic downturn in Nigeria, Spleet has encountered formidable challenges, particularly in the realm of rental property management. The CEO, Adetola Adesanmi, revealed that the economic hardships have prompted landlords to enact substantial increases in rent prices, thereby disrupting the equilibrium of the rental market.
The Operational Viability of Spleet
The adverse economic climate has evidently strained the operational viability of Spleet, compelling the company to undertake measures aimed at restructuring its workforce. The decision to implement workforce reductions underscores the difficult choices faced by businesses amidst economic uncertainty, as they strive to navigate through tumultuous times while ensuring their sustainability and resilience in the face of adversity.
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