However, Zepz indicated that it is hiring over 200 new positions including software developers, management positions, and marketing roles, among many other roles.
In an effort to streamline its business structure for future growth prospects, London-based money transfer platform Zepz has announced a reduction of its workforce by about 26 percent. In a report by CNBCZepz reportedly brought 420 of its employees home but not due to macroeconomic pressures. As a result, Zepz were left with a total number of 1,180.
Zepz is available in more than 5,000 global money transfer lanes, and has challenged remittance giants like Western Union Co (NYSE:WU). Moreover, Zepz has more than 11 million users in 150 countries and is valued at nearly $5 billion after closing a $292 million Series E funding round. As a result, Zepz is well positioned to take over the global remittance market if it restructures well.
Zepz business restructuring plan
According to Mark Lienhard, CEO of Zepz, the company is re-evaluating how to improve its organization for future growth prospects.
“The decision marks an important and necessary step in transitioning from two large teams divided into one dynamic organization under Zepz’s direction, and lays ambitious foundations towards our long-term strategic direction as a portfolio business,” noted Lienhard.
As a result, the company indicated that it is hiring over 200 new positions including software developers, management positions, and marketing roles, among many other roles. The company intends to support employees who have lost their jobs at Zepz. Moreover, the same employees helped Zepz turn a profit last year.
“The remittance industry has maintained strong growth despite the global economic conditions, and we have seen this audience take great measures to ensure their loved ones are supported as costs rise around the world,” added Lienhard.
Notably, Zepz has significantly reduced its expenses by cutting jobs that were duplicated through the operations of its two market brands Sendwave and WorldRemit. Meanwhile, the company’s CEO indicated that there are no plans for an initial public offering or exit plans in the near future. Furthermore, Lienhard noted that the company’s executive leadership is pleased with the fact that the company has been turning a profit since the first quarter of 2022.
Market forecast
Although Zepz has its main offices in the United Kingdom, the company’s presence is also felt in the United States, Canada, Australia, Hong Kong, Singapore, Malaysia, the Philippines, South Africa, Somaliland, Uganda, Kenya, Rwanda, Tanzania, Zimbabwe and Belgium. As of 2020, Zepz has facilitated the transfer of over $10 billion from 50 million customer transactions.
However, the company’s future growth prospects are under pressure from Web3 technology companies like Binance and its ecosystem facilitating cheaper and faster cross-border transactions. Moreover, there has been a steady increase in the adoption of Bitcoin among other digital assets.
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