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Retail-focused startup Alerzo lays off 400 people

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2 years ago

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Alerzo, a technology platform that caters to retail stores, has laid off at least 400 people, three people close to the situation told us. The new layoffs come after the company laid off hundreds of employees in August and September 2022. At the time of the first layoffs, the company said, “Due to this increased digitization, some roles that were previously required no longer are necessary, specifically for our internal warehouse operations.” As part of the new round of layoffs, Alerzo is reportedly reducing its business footprint and will now close 14 warehouses across the country.

This year’s layoffs happened in the first week of March 2023. On Glassdoor, anonymous employees wrote about poor company culture, a lack of structure and an absence of work-life balance. One review stated, “Alerzo will fire you anytime they want.” In contrast, another review titled “termination” noted that one con of working with the company is “you can’t relax while working with Alerzo,” a reference to job insecurity.

While three sources said that at least 600 people were fired, Alerzo said that 15% of full time staff (150-200 full time employees) were affected, while150-200 part-time employees were fired. The company said it could not provide an exact number at the time of our conversation.

More layoffs in March

Two sources told Society Reporters that affected employees got termination emails at around 6 p.m. on March 1 and were promptly logged out of work tools. On Saturday, more employees also received termination emails. Both sources also confirmed that, unlike the first round of layoffs which affected mainly warehouse staff, this was broader, with the company’s head of communications reportedly affected as well. Alerzo told employees that difficult macroeconomic conditions necessitated the layoffs. It also cited post-election uncertainties and a need to improve its unit economics.

Part of the email also said that employees would be paid one month’s salary as part of their severance package. The company also told employees that their HMO packages will remain active until the year’s end and offered assistance with job placement. Two sources revealed that the general feeling was that the severance package was unimpressive. But Alerzo told us that “most employees will receive two months salary as part of their severance package but this was not communicated to them because of some considerations.”

Alerzo says cashless policy may have impacted business
One of the reasons Alerzo gave for last week’s layoffs was post-election uncertainty. The company said that while it was prepared for a slowdown in business due to the elections, the currency scarcity was a double whammy. “A lot of suppliers and customers are feeling the pain of the cashless situation and the election slowdown, so we had to put the business on a path to profitability. We want to be in a place where we can control unit economics more closely and we believe that we have the headcount to do so.”

When the company raised money in September 2021, it began an expansion that saw it increase its spend. The company says it had broken even before it raised money and that its assumptions in 2021 are different from today. The company said on a phone call, “These changes are tough and unfortunate, but we now have the opportunity to reorient and get to profitability quickly. We have a payments business that’s growing very fast, we’ve gotten a banking licence and a PSS licence and we’re in the process of launching 3 different products.”

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Former Governor Ifeanyi Okowa, Spends Second Night In EFCC’s Cell Over N1.3 Trillion Alleged Fraud

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14 hours ago

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November 7, 2024

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Immediate past governor of Delta State, Ifeanyi Okowa, who was arrested and detained by the Economic and Financial Crimes Commission (EFCC) has spent second night in the custody of the anti-graft commission.

 

Okowa is currently being investigated and detained over the alleged diversion of N1.3 trillion.

 

The N1.3 trillion reportedly represents the 13% derivation fund from the federation account between 2015 and 2023.

 

According to sources within the commission, Okowa was invited to the EFCC office in Port Harcourt, Rivers State, where he’s subsequently detained by officials.

 

One of the sources stated, “Okowa was at our Port Harcourt office following an invitation from investigators probing the allegations against him. He was then arrested. The commission is investigating him regarding the N1.3 trillion 13% derivation fund from the federation account between 2015 and 2023.

 

“He is also accused of failing to account for the funds, as well as another N40 billion he allegedly claimed was used to acquire shares in UTM Floating Liquefied Natural Gas. He reportedly bought shares worth N40 billion in one of the country’s major banks, representing an 8% equity stake, to support the offshore LNG project. The funds are alleged to have been misappropriated for other purposes.

Investigators are also examining the alleged diversion of funds by the former governor to acquire estates in Abuja and Asaba, Delta State. He is currently being held at the EFCC facility in Port Harcourt.

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Lagos Government Shuts Down Redeemed Church, Celestial Church, Clubs, Event Centres Over Noise Pollution

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1 day ago

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November 6, 2024

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The Lagos State government has shut down a branch of Pastor E. A. Adeboye’s Redeemed Christian Church of God, a Celestial church, nightclubs and event centres over noise pollution.

The Commissioner for Environment and Water Resources, Tokunbo Wahab, who made this known on Wednesday, said the churches, clubs and event centres were sealed on Tuesday by the Lagos State Environmental Protection Agency (LASEPA) in the Ogudu, Gbagada, Iyana Ejigbo, Isolo, Ajao Estate, Oshodi, Ilasamaja, and Okota areas of the state.

The sealed establishments include: Redeemed Christian Church of God, Celestial Church of God, OMA Nightclub and Lounge, Lounge & Lodging, Bridge Spot Bar, Okiki Event Center and Hall, Emota Paradise Hotel (Phase 2), CF Hotel & Suites, House 27 Hotel & Suites, Echo Spring Hotel, and Smile T Continental Hotel.

The commissioner in a post on X said, “In a bid to address noise pollution and other environmental violations, the Lagos State Environmental Protection Agency (LASEPA) took action yesterday, closing down several establishments across different parts of the state.

“This enforcement drive, focusing on areas like Ogudu, Gbagada, Iyana Ejigbo, Isolo, Ajao Estate, Oshodi, Ilasamaja, and Okota, is part of LASEPA’s continuous efforts to uphold environmental standards and safeguard public health.

“The affected establishments include Honourable Lounge & Lodging, Redeemed Christian Church of God, Celestial Church of God, OMA Nightclub and Lounge, Bridge Spot Bar, Okiki Event Center and Hall, Emota Paradise Hotel (Phase 2), CF Hotel & Suites, House 27 Hotel & Suites, Echo Spring Hotel, and Smile T Continental Hotel.”

 

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Gen. Taoreed Lagbaja: Tinubu directs flags be flown at half-mast

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1 day ago

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November 6, 2024

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President Bola Tinubu has directed that Nigeria’s national flags be flown at half mast for seven days across the country to mourn the passing of the late Chief of Army Staff, Lt. Gen. Taoreed Lagbaja.

The late Army chief, who was appointed by Tinubu on 19 June 2023, was said to have passed away on Tuesday night after a prolonged illness.

The Secretary to the Government of the Federation, George Akume, in a statement on Wednesday by his office Director of Information & Public Relations, Segun Imohiosen, said the president expressed regret over Lagbaja’s death.

Akume said, “President Bola Tinubu has expressed regret following the death of the Chief of Army Staff, Lieutenant General Taoreed Abiodun Lagbaja, after a brief illness at the age of 56.

“The President has directed that national flags be flown at half mast throughout the country for seven days in honour of the departed Army chief.

“He profoundly appreciates the services of the departed to the nation and wishes the family the fortitude to bear the great loss.”

Meanwhile, the Ministers of Defence, Mohammed Badaru and Bello Matawalle, have commiserated with the president, the military, and Lagbaja’s family over his death.

In a statement by the Ministry’s spokesperson, Henshaw Ogubike, the ministers described Lagbaja’s death as a great loss to his family, the Army, and the nation at large.

“The passing on to eternal glory shocked us at the Ministry of Defence, as our working relationship with him was commendable; he exhibited the spirit of camaraderie and cooperation with us in the discharge of our mandate.

“The late Chief of Army Staff contributed significantly to internal security operations across Nigeria and also exhibited a high level of professionalism.

“He will be greatly missed by the family, the military, and the nation, as he served the nation with commitment and dedication,” the statement added.

 

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