Big Layoffs At Zepz As The Company Restructures Operations
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Zepz, a British digital remittance company, is reducing its number of workers and closing business units in Kenya and Poland. According to reports, around 200 employees will be affected by these job cuts. Two former workers, who lost their jobs, shared this information but asked not to be named.
As of January, Zepz had around 1,000 employees worldwide. The recent layoffs mean about 20% of its workforce is losing their jobs. Most of the job cuts affect IT workers, including those who handle database management, software development, and other technical roles.
Zepz Says The Layoffs Will Help The Company Grow Stronger
The firm confirmed that it is letting go of employees to focus on long-term growth. However, the company did not say exactly how many people are losing their jobs. A spokesperson explained that the job cuts are still happening and have not yet been completed.
The company stated that it recently upgraded its technology by using more automation and artificial intelligence (AI). Because of this, some technical jobs are no longer needed, leading to the current layoffs. Zepz said that these changes will make its operations more efficient.
Zepz was once known as WorldRemit. It was founded by Ismail Ahmed, a businessman who was born in Somalia but later moved to Britain. Ahmed now serves as the company’s non-executive chairman. In 2020, Zepz changed its name after buying another money transfer service called Sendwave.
Zepz CEO Says The Job Cuts Are A Hard But Necessary Decision
CNBC obtained a memo from Zepz CEO Mark Lenhard, which was shared with employees in January. In the memo, Lenhard said that the company had to make this difficult decision. He explained that company is shutting down its Kenya and Poland offices and reducing jobs in different departments.
The company calls itself a “remote-first employer,” meaning many employees work from home instead of office locations. Lenhard noted that these changes are tough, but they are needed to help Zepz focus on its mission of serving immigrants around the world.
Zepz also assured that the layoffs will not affect its customers. The company said it remains committed to providing financial services to migrants and will continue to focus on new ideas and improvements.
Zepz is not laying off part of its workforce for the first time. The firm cut off about 420 workers in 2023, this was about 26% of its workers as at then. Towards the end of that same year, it also removed 30 jobs from its marketing department.
