Mark Lenhard, CEO of U.Ok.-based remittances platform Zepz.
Lukas Schulze | Sportsfile for Internet Top by means of Getty Photographs
LONDON — British virtual remittances corporate Zepz is shedding dozens of IT employees and is within the means of latter ailing industry devices in Poland and Kenya.
Kind of 200 team of workers participants can be impacted by way of the redundancy measures, two staff who had been made redundant informed CNBC, asking to stay nameless because of the sensitivity of the topic.
As of January, London-headquartered Zepz — previously referred to as WorldRemit — had an international headcount of one,000 population, which means the redundancies have an effect on round 20% of its overall staff.
The layoffs have an effect on a number of IT purposes on the corporate, together with database management, construction operations and instrument engineering, the previous staff stated.
Zepz showed to CNBC that it was once lowering headcount to bring to “sustainably support the next phase of long-term strategic goals and continued growth.” The corporate declined to remark at the selection of staff impacted by way of the layoffs, with a spokesperson explaining that the redundancy procedure was once ongoing.
“Following the successful completion of its replatforming efforts, bolstered by advanced automation and AI, Zepz has embarked on a strategic initiative to optimise operations across the organisation,” a Zepz spokesperson informed CNBC by way of electronic mail.
“This transformation has reinforced the technology foundation and reduced the need for certain operational and technical capacities, prompting a proposed reduction in roles as part of the overall plan,” the spokesperson added.
Zepz has been touted as one in all Britain’s fintech darlings. The corporate was once based by way of Ismail Ahmed, a Somalia-born British entrepreneur who fled the rustic throughout the Somali Civil Warfare. Ahmed lately serves as the corporate’s non-executive chairman.
The gang was once renamed Zepz following the purchase of cash switch platform Sendwave in 2020, with the emblem and WorldRemit coming beneath one father or mother corporate.
‘Tricky selection’
CNBC got an organization memo pronouncing the cost-cutting measures shared by way of Zepz CEO Mark Lenhard internally in January.
“Today we are announcing a very difficult decision — proposed reductions in our team across all HQ functions, and most regions. And specifically we are proposing the closure of our Kenya and Poland employing entities,” Lenhard stated within the memo.
Zepz touts itself as a “remote-first employer,” with regional workplaces in Kenya and Poland.
“This is a difficult choice, which impacts the lives of our colleagues and friends. This is also a choice which is critical to the success of our mission to serve immigrants everywhere. Both facts are true, at the same time,” Lenhard stated.
“To be clear, this is not a change of strategy. We’re doubling down on our mission in an effort to expand our impact faster,” he added. “In some places, this will mean we’ll need to continue to ruthlessly prioritize. In others, we’re going to get more efficient. In many cases it will involve rethinking how we do things today.”
Zepz’s spokesperson insisted that the IT laborer layoffs “will not impact customers in any region or market,” and added that the company “remains committed to its mission of serving migrants worldwide, driving innovation, and delivering meaningful financial solutions to millions globally.”
This isn’t the primary hour Zepz has short a spate of roles to avoid wasting on prices. In 2023, Zepz laid off 420 staff, which accounted for roughly 26% of its world headcount on the hour. Nearest that date, Zepz slashed an extra 30 roles throughout its population and advertising and marketing purposes.
Zepz has lengthy been touted as a possible IPO candidate, however a timeline for that is non-transperant. Counting the likes of Accel, TCV and Leapfrog as buyers, the startup was once valued at $5 billion in 2021. The corporate introduced a $267 million investment spherical latter date.
Zepz faces festival from a number of impressive virtual bills gamers together with PayPal, Smart, Revolut and Remitly.
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