Startup News

COVID-19: SA Based Start-up Yoco Relieved staff Off Duties as Revenues Dwindles

Yoco - cfamedia

A fintech start-up, based in South Africa, Yoco has relieved some of its staff of their employment, as the company has experienced a huge drop in its revenue income streams, due to the effects of the coronavirus, which has forced most businesses to scale down activities, or, shut down, with people to remain indoors.

According to the statement released by the start-up, the aim of taking the step is, to remain sustainable, as the business is no longer moving smoothly as projected, as some of their clients are, also, experiencing revenue loses, in this era of lockdown, caused by the deadly COVID-19.

The start-up would not only be relieving some of its staff of their duties, but has, also, concluded plans to retain staff in key positions like the production team, technical team and as well as, stressing that, the management team, will be paid half salaries, until the lockdown passes and normalcy returns to the business world.

“As a business, we looked at what’s going on, in the climate of today – and we try and take a very responsible stance. to how we approach things as a company – and our view was that, many businesses leave it too late, in this type of situation, to look at something like retrenchments.

This means that, by the time they do it, they actually have no options left, in terms of how they do it”, stressed Lungisa Matshoba, Co-Founder and Chief Technology Officer, (CTO), of Yoco, while speaking on the development.

Matshoba further stated that “Our view was that, if we can start looking at this, at the right time – as we feel that, now is the right time – we can do it, while we have a tonne of options around how we do it, in a graceful manner that upholds our principles, as a company”, Matshoba further stated.

“Our ultimate goal, as a business is to, hopefully, be in a situation, where we can bring some of those people back into the company, over the next while”, Matshoba concluded.

Featured Image: partechpartners

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