Mark Lenhard, CEO of U.Ok.-based remittances platform Zepz.
Lukas Schulze | Sportsfile for Internet Summit through Getty Photos
LONDON — British digital remittances firm Zepz is shedding dozens of IT staff and is within the strategy of closing down enterprise items in Poland and Kenya.
Roughly 200 workers members shall 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 often called WorldRemit — had a worldwide headcount of 1,000 folks, that means the redundancies have an effect on round 20% of its whole workforce.
The layoffs have an effect on a number of IT capabilities on the firm, together with database administration, improvement operations and software program engineering, the previous staff stated.
Zepz confirmed to CNBC that it was decreasing headcount with a view to “sustainably help the subsequent part of long-term strategic objectives 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 e mail.
“This transformation has bolstered the expertise basis and lowered 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 in every of Britain’s fintech darlings. The corporate was based by Ismail Ahmed, a Somalia-born British entrepreneur who fled the nation through the Somali Civil Struggle. Ahmed at present 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 dad or mum firm.
‘Troublesome alternative’
CNBC obtained an organization memo asserting the cost-cutting measures shared by Zepz CEO Mark Lenhard internally in January.
“At the moment we’re asserting a really tough resolution — proposed reductions in our staff throughout all HQ capabilities, and most areas. And particularly we’re proposing the closure of our Kenya and Poland using entities,” Lenhard stated within the memo.
Zepz touts itself as a “remote-first employer,” with regional places of work in Kenya and Poland.
“This can be a tough alternative, which impacts the lives of our colleagues and associates. That is additionally a alternative which is vital to the success of our mission to serve immigrants all over the place. Each information are true, on the similar time,” Lenhard stated.
“To be clear, this isn’t a change of technique. We’re doubling down on our mission in an effort to increase our influence sooner,” he added. “In some locations, it will imply we’ll have to proceed to ruthlessly prioritize. In others, we’ll get extra environment friendly. In lots of instances it’ll contain rethinking how we do issues at present.”
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 tens of millions globally.”
This is not the primary time Zepz has lower a spate of roles to avoid wasting on prices. In 2023, Zepz laid off 420 staff, which accounted for about 26% of its world headcount on the time. Later that 12 months, Zepz slashed an extra 30 roles throughout its folks and advertising capabilities.
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 12 months.
Zepz faces competitors from a number of notable digital funds gamers together with PayPal, Smart, Revolut and Remitly.
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