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Mark Lenhard, CEO of the remittance platform based in the United Kingdom Zepz.
Lukas Schulze | Sportsfile for Web Summit through Getty Images
London – The British digital remittance company Zepz is saying goodbye to dozens of IT workers and is in the process of closing business units in Poland and Kenya.
Approximately 200 personnel members will be affected by redundancy measures, two employees who were redundant told CNBC, asking to remain anonymous due to the sensitivity of the matter.
As of January, Zepz, based in London, previously known as Worldremit, had a global staff of 1,000 people, which means that layoffs affect about 20% of their total workforce.
The dismissals affect several functions of IT in the company, including the administration of the database, the software development and engineering operations, the former employees said.
Zepz confirmed to CNBC that he was reducing staff to “sustainably support the next phase of long -term strategic objectives and continuous growth.” The company refused to comment on the number of employees affected by dismissals, with a spokesman who explains that the redundancy process was ongoing.
“After the successful completion of its replication efforts, reinforced by Advanced Automation and AI, Zepz has embarked on a strategic initiative to optimize operations throughout the organization,” said a Zepz spokesman for CNBC by email.
“This transformation has reinforced the technology base and reduced the need for certain operational and technical capacities, which caused a reduction proposed in the roles as part of the general plan,” added the spokesman.
Zepz has been promoted as one of Great Britain’s dear Fintech. The company was founded by Ismail Ahmed, a British businessman born in Somalia who fled the country during the Somali civil war. Ahmed today serves as the company’s non -executive president.
The group was called Zepz after the acquisition of the Sindwave money transfer platform in 2020, with the brand and the Worldremit in a parent company.
‘Difficult choice’
CNBC obtained a memorandum of the company that announced the cost reduction measures shared by the CEO of Zepz, Mark Lenhard, in January.
“Today we are announcing a very difficult decision: reductions proposed in our team in all HQ functions and most regions. And we are specifically proposing the closure of our employment entities of Kenya and Poland,” Lenhard said in the memorandum.
Zepz is promoted as a “remote employer”, with regional offices in Kenya and Poland.
“This is a difficult choice, which affects the life of our colleagues and friends. This is also an choice that is essential for the success of our mission to serve immigrants everywhere. Both facts are true, at the same time,” Lenhard said.
“To be clear, this is not a change in strategy. We are doubling our mission into an effort to expand our fastest impact,” he added. “In some places, this will mean that we will have to continue prioritizing ruthlessly. In others, we will become more efficient. In many cases it will imply rethinking how things do today.”
The Zepz spokesman insisted that the layoffs of IT workers “will not affect customers in any region or market,” and added that the company “remains committed to its mission of serving migrants worldwide, boosting the innovation and offer significant financial solutions to millions worldwide. “
This is not the first time that Zepz reduces a series of roles to save costs. In 2023, Zepz fired 420 employeeswhich represented about 26% of its global staff at that time. Later that year, Zepz cut another 30 roles through its people and marketing functions.
Zepz has been promoted for a long time as a possible candidate for IPO, but a timeline for this is not clear. Counting the tastes of Accel, TCV and Leapfrog as investors, the startup was valued at $ 5 billion in 2021. The company announced a financing round of $ 267 million last year.
Zepz faces the competition of several notable digital payments players, including PayPal, IntelligentRevolut and senderly.
