Fintech group Zepz, the parent company of prominent money transfer brands WorldRemit and Sendwave, has announced a significant reduction in its workforce. As fintech grapples with various challenges, including cost-conscious consumers and increased regulatory scrutiny, Zepz is taking measures to optimize its operations and streamline its workforce.
The move comes as the company seeks to consolidate roles following the combination of Sendwave and WorldRemit under one parent company. Zepz recently informed CNBC exclusively that it will be laying off approximately 420 employees, which represents around 26% of its total headcount of 1,600.
By centralizing operations and shifting certain functions to more centralized hubs, the company aims to enhance efficiency and adapt to evolving market dynamics.
Zepz has outlined that the majority of the staff reductions will affect its customer care and engineering teams. As the company realigns its operations, it seeks to consolidate these functions to improve coordination and better serve its customers.
Zepz's decision to reduce its workforce reflects the broader challenges fintech companies face. With consumers becoming more cost-conscious and demanding greater value, fintechs need to continually adapt to remain competitive.
Additionally, the industry is experiencing heightened regulatory scrutiny as authorities strive to safeguard consumer interests and maintain the integrity of financial transactions.
As a direct competitor to Western Union, Zepz operates in a highly competitive money transfer market. In response to changing customer preferences and evolving market conditions, Zepz has embarked on a consolidation strategy. While this move offers potential synergies and operational efficiencies, it requires workforce adjustments to eliminate role duplications and optimize the allocation of resources.