Zepz announces second layoff in less than a year

Zepz, a money transfer group, has announced the laying off of 420 employees. The entity, which owns Sendwave and WorldRemit insists that the move is geared towards streamlining its structure as opposed to an impact of macroeconomic pressures.

Zepz’ layoff

Zepz has a workforce of 1,600 individuals. As such, its layoff of 420 employees equates to about 26% of its labor force. This comes at a time when the broader fintech sector continues to grapple with macroeconomic pressures.

However, the firm insists that the main reason for this decision is its focus on “workforce optimization”. The management has stated that some roles were duplication following the merging of WorldRemit and Sendwave under a single parent company.

According to the company’s CEO, Mark Lenhard, this is “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”.

Notably, this is the firm’s second layoff in less than a year. In June 2022, it let go of about 5% of its workforce. Interestingly, Zepz is still looking to fill 200 positions.

Zepz’s last funding round was in 2021 when it secured $292 million at a valuation of $5 billion. The firm attained profitability in the first half of 2022 and has since been keen on scaling the business in a way that yields long-term success.

The company facilitates the transfer of funds abroad via a smartphone or computer. Subsequently, the recipient can access the amount through a mobile wallet, bank account, mobile airtime top-up, or as cash. Its competitors include Wise and Western Union.