Zepz plans to cut workforce by 26%

Zepz, a money transfer group based in London, has announced that it will be laying off 420 employees as the fintech sector faces challenges in the macroeconomic environment. The company began informing its staff of the job cuts on Monday, with individual managers informing their respective teams. By Tuesday, the entire company was aware of the decision. The reductions, which account for approximately 26% of Zepz’s workforce, will primarily affect its customer care and engineering teams as the company aims to centralize operations in more consolidated hubs.

Zepz, the parent company of WorldRemit and Sendwave, has regional offices in various countries, including the United States, Canada, Australia, Hong Kong, Poland, and Kenya. The job cuts are part of the company’s “workforce optimization” strategy, aimed at eliminating duplicated roles following the merger of Sendwave and WorldRemit.

Zepz stated that the decision to reduce its headcount was driven by the need to streamline the organization’s structure rather than macroeconomic pressures. The company’s CEO, Mark Lenhard, emphasized the importance of transitioning from segmented teams to a unified organization. Despite the layoffs, Zepz is still actively hiring for 200 positions.

Fintech companies like Zepz are currently facing challenges such as cost-conscious consumers and increased regulatory scrutiny, impacting their market value and funding opportunities. Zepz last secured funding in August 2021, with a valuation of $5 billion. The company is backed by prominent venture capital firms, including Leapfrog, TCV, and Accel. As Zepz continues to disrupt the money transfer industry with its innovative services, it remains committed to long-term growth and overcoming industry challenges.