Mark Lenhard, CEO of U.Ok.-based remittances platform Zepz.
Lukas Schulze | Sportsfile for Internet Summit through Getty Photographs
LONDON — British digital remittances firm Zepz is shedding dozens of IT employees and is within the strategy of closing down enterprise items in Poland and Kenya.
Roughly 200 workers members will probably be impacted by the redundancy measures, two staff who had been made redundant advised CNBC, asking to stay nameless as a result of sensitivity of the matter.
As of January, London-headquartered Zepz — previously referred to as WorldRemit — had a world headcount of 1,000 individuals, that means the redundancies have an effect on round 20% of its whole workforce.
The layoffs have an effect on a number of IT features on the firm, together with database administration, improvement operations and software program engineering, the previous staff mentioned.
Zepz confirmed to CNBC that it was decreasing headcount to be able to “sustainably help the following part of long-term strategic targets and continued development.” The corporate declined to touch upon the variety of staff impacted by the layoffs, with a spokesperson explaining that the redundancy course of was ongoing.
“Following the profitable completion of its replatforming efforts, bolstered by superior automation and AI, Zepz has launched into a strategic initiative to optimise operations throughout the organisation,” a Zepz spokesperson advised CNBC by electronic mail.
“This transformation has strengthened the expertise basis and decreased the necessity for sure operational and technical capacities, prompting a proposed discount in roles as a part of the general plan,” the spokesperson added.
Zepz has been touted as one among Britain’s fintech darlings. The corporate was based by Ismail Ahmed, a Somalia-born British entrepreneur who fled the nation throughout the Somali Civil Warfare. Ahmed at the moment serves as the corporate’s non-executive chairman.
The group was renamed Zepz following the acquisition of cash switch platform Sendwave in 2020, with the model and WorldRemit coming beneath one mum or dad firm.
‘Troublesome alternative’
CNBC obtained an organization memo saying the cost-cutting measures shared by Zepz CEO Mark Lenhard internally in January.
“Right now we’re saying a really tough choice — proposed reductions in our crew throughout all HQ features, and most areas. And particularly we’re proposing the closure of our Kenya and Poland using entities,” Lenhard mentioned within the memo.
Zepz touts itself as a “remote-first employer,” with regional places of work in Kenya and Poland.
“It is a tough alternative, which impacts the lives of our colleagues and pals. That is additionally a alternative which is essential to the success of our mission to serve immigrants in all places. Each details are true, on the similar time,” Lenhard mentioned.
“To be clear, this isn’t a change of technique. We’re doubling down on our mission in an effort to broaden our influence quicker,” he added. “In some locations, this may imply we’ll must proceed to ruthlessly prioritize. In others, we will get extra environment friendly. In lots of circumstances it’s going to contain rethinking how we do issues at the moment.”
Zepz’s spokesperson insisted that the IT employee layoffs “is not going to influence prospects in any area or market,” and added that the agency “stays dedicated to its mission of serving migrants worldwide, driving innovation, and delivering significant monetary options to thousands and thousands globally.”
This is not the primary time Zepz has minimize a spate of roles to save lots of on prices. In 2023, Zepz laid off 420 staff, which accounted for about 26% of its international headcount on the time. Later that yr, Zepz slashed an additional 30 roles throughout its individuals and advertising and marketing features.
Zepz has lengthy been touted as a possible IPO candidate, however a timeline for that is unclear. Counting the likes of Accel, TCV and Leapfrog as traders, the startup was valued at $5 billion in 2021. The corporate introduced a $267 million funding spherical final yr.
Zepz faces competitors from a number of notable digital funds gamers together with PayPal, Smart, Revolut and Remitly.
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