Zepz, a $5 billion fintech unicorn startup and owner of WorldRemit, cuts more staff in another round of layoffs

Zepz, a unicorn fintech startup that owns WorldRemit, announced a new round of layoffs affecting 30 employees in its people and marketing functions, according to an exclusive report from CNBC.

The startup, valued at $5 billion and backed by major venture capital funds like TCV, Accel, and Leapfrog, had previously cut 26% of its workforce in May, attributing it to role duplication after acquiring Sendwave, another money transfer service.

The recent layoffs are part of Zepz’s efforts to optimize its workforce and streamline operations, emphasizing its commitment to long-term growth. However, these layoffs raise concerns about the sustainability of its growth and the impact on employee morale.

According to a Zepz spokesperson, the redundancy consultation could affect less than 2% of the global headcount.

In an interview with CNBC, a Zepz company spokesperson said: “Zepz has entered a redundancy consultation which could affect less than 2% of its global headcount.” The spokesperson added, “Zepz values the contributions these colleagues have made to our company,”

“As part of the redundancy package, all impacted individuals will be offered support via our Employee Assistance Programme, including coaching, counseling, and re-employment support.”

“In line with our organizational values, our priority is ensuring all decisions relating to redundancies and restructuring are well-communicated and delivered with humanity while protecting the privacy of those impacted,” the spokesperson added.

Despite these challenges, Zepz said it remains focused on innovation and continuous improvement for its users, aiming to deliver products that make finance more convenient and accessible to migrant communities. The company, which reached profitability last year, acknowledges the need to make tough decisions to fulfill its mission of unlocking prosperity for cross-border communities.

“To fully realize our mission to unlock the prosperity of cross-border communities, we sometimes need to make tough decisions,” Zepz told CNBC.

Zepz, previously considered an IPO candidate in the U.K., faces uncertainty regarding its timeline for going public.

We covered WorldRemit in 2019 after the fintech startup raised $175 million in a Series D funding round to drive global growth and diversify its product offerings. The round was led by TCV, Accel, and Leapfrog Investments.

Founded in 2010 by Catherine Wines, Ismail Ahmed, and Richard Igoe, WorldRemit is a money transfer and mobile payment startup that helps migrants send money to their loved ones worldwide. The unique aspect of this startup lies in its ability to facilitate money transfers to friends and family residing abroad through various devices such as computers, smartphones, or tablets. Recognized as a global leader in smartphone and online payments, WorldRemit stands out by offering a convenient and cost-effective alternative to the traditional, more expensive brick-and-mortar agents.