Migo’s response to COVID-19
Migo’s business is based on using data to assess risk. Over the last few weeks we have been closely watching the increasing number of COVID-19 cases reported in Nigeria with growing concern. We have also been watching the price of oil on which the Nigerian economy so heavily relies, decline along with the value of the Naira. The lockdown has accelerated this.
We have been using this data to assess the risk that the rapidly changing Nigerian economy poses to our business as the world enters a global recession. Historically, many companies do not survive recessions. Those who do are decisive, making decisions early and quickly. With growing uncertainty about the impact to our revenue, every day we wait to make a decision, exponentially increases the risk to our business.
As such, we preemptively decided to cut operational expenses like non-essential software, consulting, AWS, travel, entertainment, and so on. However, after we took all the costs we could out of operational expenses, we came to the realization that the operational cost-cutting would not be enough to provide downside protection the company needs to ensure minimal impact through this economically uncertain period.
Thus, we have made the painful decision to adjust the size of our team in order to future-proof the company. While we are not alone (over 300 startups have reportedly laid off over 30,000 employees since the coronavirus crisis began), it does not make this decision any easier. Today we laid off 25% of the company’s workforce across our global offices. We have chosen to act early and take these difficult measures to secure the best possible outcomes for both Migo and our departing colleagues. Our team has contributed selflessly to the growth of the company, and the dream of my co-founder Kunle and I was to build this company with them. We are saddened that this will not happen as we planned.
I am deeply grateful for the opportunity to have worked with such smart and dedicated teammates. We are confident that we will ultimately emerge a stronger company as the pandemic recedes and the global economy starts to recover.
In the meantime, we remain focused on executing our roadmap to serve our partners and customers. Small businesses in Nigeria and Brazil will need us more than ever as the crisis subsides and we must emerge a stronger company in order to support them effectively.
On behalf of Migo, I thank you for your continued support of our mission to make prosperity available to consumers and small businesses around the world. We wish everyone and their families health and safety during this unprecedented time.
Migo Money, Inc.