Zepz, a prominent fintech unicorn, is planning to lay off approximately 420 employees, representing around 26 percent of its workforce. The company's customer care and engineering teams will be the most affected by these job cuts. Zepz, based in London, is a notable competitor to Western Union in the money transfer service industry. The decision to downsize is driven by the necessity to optimize the workforce, particularly due to duplicated roles resulting from the integration of Sendwave and WorldRemit, two companies that Zepz merged with. Zepz and Sendwave jointly cater to more than 11 million users across 150 countries.
In an effort to support the impacted employees, Zepz will provide assistance through various means, including counseling, coaching, career development, help with CV preparation, and support in job applications. Mark Lenhard, the CEO of Zepz, acknowledged the significance of these layoffs as a crucial step towards streamlining the organization and aligning it with their long-term strategic direction as a portfolio business. Despite the challenging global economic conditions, the remittance industry has displayed strong growth, with individuals taking significant measures to support their loved ones in the face of rising costs worldwide.
Last year, Zepz successfully raised $292 million in funding, led by hedge fund Farallon Capital and other investors, valuing the company at $5 billion. The company was originally founded in 2010 by Ismail Ahmed, a British-Somalian entrepreneur, who stepped down as CEO in 2018 but continues to serve as the non-executive chairman of the board.
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