Traction Apps, a fintech startup, has regrettably announced a reduction in its workforce following its recent acquisition by OmniRetail. This decision was made after careful consideration and was partly driven by the acquisition.

In the statement, it was noted, "Following the acquisition of Traction Apps, as with all mergers and integrations, we are optimising certain departments to align with our broader vision. This restructuring is a strategic step to enhance efficiency and scalability across our value chain, ensuring that we remain well-positioned for long-term growth. Most of the senior team members who played a key role in the growth of Traction have been retained," 

While Traction Apps did not disclose the exact number of employees affected or the specific departments involved, a source familiar with the situation indicated that the sales, engineering, and marketing teams would be impacted.

The startup also mentioned that some Traction team members have successfully transitioned to positions within OmniRetail, while the company continues to seek "additional opportunities for others."

Employees impacted by the layoffs were reportedly notified about a week prior to the acquisition, which resulted in co-founders Mayowa Alli and Dolapo Adejuyigbe taking on roles as Director of Technology for Payments and Director of Operations for Payments at OmniRetail, respectively.

Traction Apps stated that severance packages will be provided to affected employees in compliance with Nigerian labor laws, along with career counseling and job placement services.

The statement concluded, "Through the acquisition of Traction Apps, we are enhancing our leadership capabilities to provide top-tier services across the retail value chain," emphasizing that no members of Traction's leadership team will be affected by the layoffs.

The two founders, former consultants at McKinsey, established Traction Apps in 2020, drawing on their experience with financial inclusion projects during their tenure at the firm. The startup developed point-of-sale software, virtual accounts, inventory management systems, and invoicing solutions tailored for small and medium-sized enterprises in Nigeria.

Additionally, it offered PoS terminals, loan services, and a customer management platform for businesses. A collaboration with OmniRetail eventually culminated in an acquisition by the latter.