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LONDON — Zepz, a British digital remittance company, is undertaking significant layoffs, impacting numerous IT personnel and leading to the closure of its operations in Poland and Kenya. This move reflects the company’s strategy to streamline its workforce amidst changing business dynamics.
Approximately 200 positions are at risk as part of these reductions, amounting to about 20% of Zepz’s workforce, which stood at around 1,000 as of January. The layoffs primarily involve roles in database administration, development operations, and software engineering, according to information from anonymous sources within the company.
Zepz has publicly confirmed its layoffs, emphasizing a commitment to align its workforce with future strategic objectives and sustainable growth. However, the company refrained from disclosing specific figures regarding the layoffs, citing an ongoing redundancy process.
In a communication to employees, CEO Mark Lenhard acknowledged the difficult nature of the decision. He stated, “This is a difficult choice, which impacts the lives of our colleagues and friends,” while underlining the necessity of this move to further their mission of supporting immigrants globally.
Following successful replatforming efforts, enhanced by advancements in automation and artificial intelligence, Zepz aims to optimize its operations. The spokesperson noted that the organizational transformation has established a more robust technological framework, subsequently reducing the need for various operational roles.
Zepz, which was originally launched as WorldRemit by entrepreneur Ismail Ahmed – a Somalia-born individual who fled the Somali Civil War – has been recognized as one of the promising fintech companies in the UK. The company rebranded to Zepz after acquiring Sendwave in 2020, consolidating its operations under one parent company.
Navigating Challenges
The company positions itself as a leader in the digital remittance sector, contending with giants like PayPal, Wise, Revolut, and Remitly. Zepz’s trajectory has included significant investment support, boasting a valuation of $5 billion in 2021 and securing a $267 million funding round the following year. While there is ongoing speculation regarding a potential Initial Public Offering (IPO), no definitive timeline is available.
As Zepz navigates these operational adjustments, the firm maintains that the layoffs of IT workers will not adversely affect customers in any market, reiterating its commitment to innovation and providing effective financial solutions for migrants worldwide.
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