Zepz, the fintech unicorn behind money transfer service WorldRemit and backed by major venture capital funds such as TCV, Accel, and Leapfrog, has confirmed a recent round of layoffs. The British company exclusively informed CNBC that it has cut 30 roles across its people and marketing functions.
A spokesperson for Zepz stated that the company is undergoing a redundancy consultation, potentially affecting less than 2% of its global headcount. The spokesperson emphasized the value of the impacted colleagues' contributions and assured that support, including coaching, counseling, and re-employment assistance, would be provided as part of the redundancy package.
This recent workforce reduction follows a previous round of layoffs in May, where Zepz cut 26% of its workforce. The company attributed these cuts to the duplication of roles resulting from its acquisition of Sendwave, another money transfer service. Zepz, with a valuation of $5 billion, had emerged as one of Europe's largest and most valuable fintech companies.
Despite reaching profitability for the first time last year, Zepz acknowledges the challenges posed by the slowing momentum in the digital payments space. Many companies in the sector have been compelled to trim costs and implement layoffs. Zepz emphasized its commitment to innovation and continuous improvement to deliver convenient and accessible financial products for migrant communities.
While Zepz has been frequently considered as a potential IPO candidate in the U.K., the timeline for such a move remains uncertain. The company underscores its mission to unlock prosperity for cross-border communities and acknowledges that tough decisions are sometimes necessary to achieve this goal. As the company navigates these changes, its focus remains on delivering meaningful products and maintaining a balance between organizational restructuring and preserving the well-being of its workforce.
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