Mark Lenhard, CEO of UK-based money transfer platform Zepz.
Lukas Schulze | SportsFile for Web Summit via Getty Images
London – British digital remittance company Zepz has installed dozens of IT workers and is in the process of closing business units in Poland and Kenya.
Approximately 200 staff members were affected by redundancy measures, and the two redundant employees are asking CNBC to remain anonymous due to sensitivity to the issue.
As of January, London-based Zep (formerly known as World Remit) had 1,000 world scholars. In other words, redundancy affects approximately 20% of the total workforce.
Layoffs affect IT capabilities in the company, including database management, development operations and software engineering, said the former employee.
Zepz confirmed with CNBC that it is reducing its staffing to “sustainably support its long-term strategic goals and the next phase of continuous growth.” The company declined to comment on the number of employees affected by the layoffs, and the spokesman explained that a redundancy process is ongoing.
“After successfully completing its regeneration work, powered by Advanced Automation and AI, Zepz has embarked on a strategic initiative to optimize the operation of the entire organization,” a Zepz spokesman told CNBC in an email. Ta.
“This transformation has strengthened the technology foundation, reduced the need for specific operational and technical capabilities, and reduced the proposal for roles as part of the overall plan,” the spokesman added. .
Zepz is advertised as one of the UK’s Fintech darlings. The company was founded by Ismail Ahmed, a Somali-born British entrepreneur who fled the country during the Somali civil war. Ahmed is the company’s non-executive chairman today.
The group was renamed Zepz in 2020 following the acquisition of remittance transfer platform Sendwave, with the brand and WorldRemit becoming one parent company.
“Difficult choice”
CNBC obtained a company’s memo in January announcing cost-saving measures that Zepz CEO Mark Lenhard shares internally.
“Today we are announcing a very difficult decision. We are proposing all HQ functions, and most regions to cut teams. Specifically, we are closure of employment entities in Kenya and Poland. I’m proposing it,” Lenhard said in a memo.
Zepz promotes himself as a “remote-first employer” with regional offices in Kenya and Poland.
“This is a difficult choice and affects the lives of our colleagues and friends. It is a key choice for the success of our mission to serve immigrants everywhere. Both facts are true at the same time,” says Lenhardt. I did.
“To be clear, this is not a change in strategy. We are doubleping our mission to expand our impact more quickly,” he added. “In some places, this means we need to continue to prioritize relentlessly. In others, it’s more efficient. Often, it includes rethinking what’s today. It will be done.”
A spokesman for Zepz argued that IT workers layoffs “do not affect customers in any region or market,” and said, “The company serves immigrants around the world, promotes innovation and makes sense around the world.” We are committed to our mission to provide financial solutions.”
This is not the first time Zepz has cut its role to save money. In 2023, Zepz fired 420 employees, accounting for around 26% of world scholars at the time. Later that year, Zepz cut another 30 roles across people and marketing functions.
Zepz has long been touted as a potential IPO candidate, but the timeline for this is unknown. With the likes of Accel, TCV and Leapfrog as investors, the startup was valued at $5 billion in 2021. The company announced a $267 million funding round last year.
Zepz faces competition with several notable digital payment players PayPal, wisenot revolutionary.
See: We now have a “all generation” of fintechs preparing for an IPO, says QED investor Nigel Morris
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