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Fintech Group Zepz Lays Off 420 Employees to Restructure Its Business

Summary:
Zepz, however, noted that it is hiring more than 200 new roles including software developers, managerial positions and marketing roles, among many others. In a bid to streamline its business structure for future growth prospects, Zepz,  a London-headquartered money transfer platform, has announced the reduction of its workforce by about 26 percent. In a report by CNBC, it is said that Zepz has sent home 420 of its employees but not due to macroeconomic pressure. As a result, Zepz has been left with a total headcount of 1,180. Available in more than 5,000 global money transfer corridors, Zepz has challenged remittance giants like Western Union Co (NYSE: WU). Furthermore, Zepz has over 11 million users across 150 countries and a valuation of about billion following the closure of a

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Zepz, however, noted that it is hiring more than 200 new roles including software developers, managerial positions and marketing roles, among many others.

In a bid to streamline its business structure for future growth prospects, Zepz,  a London-headquartered money transfer platform, has announced the reduction of its workforce by about 26 percent. In a report by CNBC, it is said that Zepz has sent home 420 of its employees but not due to macroeconomic pressure. As a result, Zepz has been left with a total headcount of 1,180.

Available in more than 5,000 global money transfer corridors, Zepz has challenged remittance giants like Western Union Co (NYSE: WU). Furthermore, Zepz has over 11 million users across 150 countries and a valuation of about $5 billion following the closure of a Series E funding round with $292 million.  As a result,  Zepz is well-positioned to take over the global remittance market if well-restructured.

Zepz Business Restructuring Plan

According to Mark Lenhard, Zepz CEO, the company has been re-evaluating how to optimize its organization for future growth prospects

“The decision marked an important and necessary step in transitioning from two vast, segmented teams to one dynamic organization under Zepz, and laying ambitious foundations towards our long-term strategic direction as a portfolio business,” Lenhard noted.

As a result, the company noted that it is hiring for more than 200 new roles including software developers, managerial positions, and marketing roles, among many others. The company intends to support the employees who have lost their jobs at Zepz. Furthermore, the same employees helped Zepz become profitable last year.

“The remittance industry has maintained robust growth despite global economic conditions, and we’ve seen this audience take great measures to ensure their loved ones are supported as costs rise around the world,” Lenhard added.

Notably, Zepz has significantly reduced its expenses by cutting jobs that had been duplicated through the operations of two market brands Sendwave and WorldRemit. Meanwhile, the company’s CEO noted there are no planned Initial Public Offerings or exit plans in the near future. Moreover, Lenhard noted that the company’s executive leadership is pleased with the fact that the company is profitable since the first quarter of 2022.

Market Outlook

Although Zepz has its main offices in the United Kingdom, the company’s presence is also felt in the United States, 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 tech companies like Binance and its ecosystem that facilitates cheaper and faster cross-border transactions. Furthermore, there has been a steady increase in the adoption of Bitcoin among other digital assets.

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Steve Muchoki

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