Zepz, a prominent British digital remittances company, announced a significant reduction in its workforce, laying off 420 employees, approximately 26% of its global headcount in 2023. The company, formerly known as WorldRemit, underwent this transformation following its acquisition of Sendwave in 2020. The recent layoffs form part of Zepz's broader strategy to align with its long-term strategic goals and sustainable growth. As a remote-first employer, Zepz maintains regional offices in Kenya and Poland, both of which are experiencing business unit closures as part of the restructuring process.
Founded by Somalia-born British entrepreneur Ismail Ahmed, who fled Somalia during the civil war, Zepz has become a major player in the digital payments industry. The company, valued at $5 billion in 2021, announced a $267 million funding round last year and has been considered a potential IPO candidate. Despite these achievements, Zepz faces stiff competition from industry giants such as PayPal, Wise, Revolut, and Remitly.
The company's decision to reduce its workforce aims to "sustainably support the next phase of long-term strategic goals and continued growth." Zepz's spokesperson emphasized that the layoffs "will not impact customers in any region or market," reaffirming the company's commitment to serving migrants worldwide and delivering innovative financial solutions.
"This is a difficult choice, which impacts the lives of our colleagues and friends. This is also a choice which is critical to the success of our mission to serve immigrants everywhere. Both facts are true, at the same time," – Lenhard
Zepz's leadership remains steadfast in their mission, as highlighted by Lenhard. He stated that there is no change in strategy but rather a redoubling of efforts to expand their impact more rapidly.
"To be clear, this is not a change of strategy. We're doubling down on our mission in an effort to expand our impact faster," – Lenhard
The company's spokesperson further elaborated on the strategic initiative undertaken by Zepz. Following the successful completion of its replatforming efforts, which were bolstered by advanced automation and AI, Zepz has moved to optimize operations across the organization.
"Following the successful completion of its replatforming efforts, bolstered by advanced automation and AI, Zepz has embarked on a strategic initiative to optimise operations across the organisation," – Zepz spokesperson
This transformation has reinforced the company's technology foundation and reduced the need for certain operational and technical capacities, prompting a proposed reduction in roles as part of the overall plan.
"This transformation has reinforced the technology foundation and reduced the need for certain operational and technical capacities, prompting a proposed reduction in roles as part of the overall plan," – Zepz spokesperson
Despite the workforce reductions, Zepz remains committed to its mission of innovation and service.
"remains committed to its mission of serving migrants worldwide, driving innovation, and delivering meaningful financial solutions to millions globally." – Zepz's spokesperson
In some areas, this restructuring involves ruthless prioritization and increased efficiency. In other cases, it requires rethinking current operations.
"In some places, this will mean we'll need to continue to ruthlessly prioritize. In others, we're going to get more efficient. In many cases it will involve rethinking how we do things today." – Lenhard
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