London-headquartered fintech Zepz is laying off 20% of its global workforce, marking another significant round of redundancies as the company restructures to streamline operations and cut costs. CNBC, citing anonymous sources, reported that the layoffs primarily impact IT functions, including database administration, development operations, and software engineering.
Zepz—formerly known as WorldRemit—confirmed the workforce reduction, stating that the move is necessary to “sustainably support the next phase of long-term strategic goals and continued growth.” The latest layoffs affect approximately 200 employees, given that Zepz had a global headcount of 1,000 as of last month.
The company was founded by Ismail Ahmed, a Somalia-born British entrepreneur who fled the country during the Somali Civil War. Ahmed today serves as the company’s non-executive chairman.
A Pattern of Workforce Reductions
This is not the first time Zepz has made deep cuts to its workforce in an effort to optimize costs. In 2023, the fintech firm laid off 420 employees, amounting to 26% of its total staff at the time. Later that year, it eliminated 30 additional roles across its people and marketing functions. The latest job cuts indicate continued financial and operational pressures amid a rapidly changing digital remittance landscape.
Challenges in the Digital Remittance Market
The global remittance market, which facilitates the transfer of hundreds of billions of dollars across borders annually, is undergoing significant disruption. Fintech firms like Zepz are grappling with a range of challenges, including:
Cost-conscious consumers shifting to more affordable money transfer alternatives
Regulatory scrutiny increasing compliance costs and slowing expansion.
Investor skepticism affecting valuations and limiting funding opportunities.
Zepz has been considered a strong IPO candidate, but its latest restructuring suggests that public listing plans may be on hold. Investors and analysts remain uncertain about the company’s ability to scale profitably amid these market pressures.
Recent Funding and IFC Investment
Despite the layoffs, Zepz continues to attract investment. Earlier this month, the International Finance Corporation (IFC), a division of the World Bank, announced a $20 million investment in the company. Additionally, Zepz raised $267 million in Series F funding, led by Accel, with participation from Leapfrog and TCV.
While these funding rounds bolster Zepz’s financial position, the company’s long-term growth strategy and path to profitability remain under scrutiny as it navigates a highly competitive and regulation-heavy remittance market.
Zepz at a Glance
Year founded: 2009 Headquarters: London, UK Monthly send volumes: $1.31bn Recipient countries: 130
