Fintech Group Zepz lays off 420 employees to restructure the business
However, Zepz noted that it is hiring more than 200 new roles, including software developers, management positions and marketing roles, among many others.
In an effort to streamline its business structure for future growth prospects, London-headquartered money transfer platform Zepz has announced a workforce reduction of approximately 26 percent. In a report from CNBC, it is said that Zepz has sent home 420 of its employees, but not because of macroeconomic pressures. As a result, Zepz has been left with a total number of employees of 1,180.
Available in more than 5,000 global money transfer corridors, Zepz has challenged money transfer giants such as Western Union Co (NYSE: WU ). Furthermore, Zepz has over 11 million users in 150 countries and is valued at around $5 billion after closing a $292 million Series E funding round. As a result, Zepz is well positioned to take over the global money transfer market if it is restructured well.
Zepz Business Restructuring Plan
According to Mark Lenhard, CEO of Zepz, the company has reassessed how to optimize the organization for future growth prospects
“The decision marked an important and necessary step in the transition from two large, segmented teams to one dynamic organization under Zepz, and lays an ambitious foundation for our long-term strategic direction as a portfolio business,” noted Lenhard.
As a result, the company noted that it is hiring for more than 200 new roles, including software developers, management positions and marketing roles, among many others. The company intends to support the employees who have lost their jobs in Zepz. Furthermore, the same employees contributed to Zepz becoming profitable last year.
“The remittance industry has maintained robust growth despite global economic conditions, and we’ve seen this audience take great action to ensure their loved ones are supported as costs rise around the world,” Lenhard added.
In particular, Zepz has significantly reduced its expenses by cutting jobs that had been duplicated through the operation of two market brands Sendwave and WorldRemit. Meanwhile, the company’s CEO noted that there are no planned IPOs or exit plans in the near future. Furthermore, Lenhard noted that the company’s management is satisfied that the company has been profitable since the first quarter of 2022.
Market outlook
Although Zepz is headquartered in the UK, the company’s presence is also felt in the US, Canada, Australia, Hong Kong, Singapore, Malaysia, the Philippines, South Africa, Somaliland, Uganda, Kenya, Rwanda, Tanzania, Zimbabwe, and Belgium. As of 2020, Zepz had facilitated the transfer of more than $10 billion from 50 million customer transactions.
Nevertheless, the company’s future growth prospects are under pressure from Web3 technology companies like Binance and its ecosystem that facilitates cheaper and faster cross-border transactions. Furthermore, there has been a steady increase in the use of Bitcoin among other digital assets.
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