Zepz's Strategic Layoffs: A Path to Long-Term Growth

Zepz, the British digital remittances company, has announced plans to lay off 20% of its global workforce, affecting around 420 employees. This decision, driven by the need to address role duplication and streamline operations following the acquisition of Sendwave, is part of the company's strategic initiative to optimize its organization and sustainably support its long-term goals. In this article, we will explore the reasons behind Zepz's decision, its potential impact on the company's operations, and the measures Zepz is taking to mitigate these effects.

Zepz's decision to lay off 20% of its workforce is primarily driven by two main reasons:

1. Role duplication and consolidation: Following the acquisition of Sendwave in 2020, Zepz combined the two companies under one parent organization. This led to a duplication of certain roles, which the company aimed to address through cost-cutting measures. Zepz's CEO, Mark Lenhard, stated that the layoffs were an important step in transitioning from two vast, segmented teams to one dynamic organization under Zepz, and laying ambitious foundations towards its long-term strategic direction as a portfolio business.
2. Streamlining operations and reducing costs: Zepz's strategic initiative to optimize operations across the organization was another key reason behind the layoffs. The company aimed to reduce the need for certain operational and technical capacities, prompting a proposed reduction in roles as part of the overall plan. This transformation was bolstered by advanced automation and AI, which reinforced the technology foundation and enabled the company to streamline its operations.

These reasons align with Zepz's long-term strategic goals in several ways:

* By consolidating roles and streamlining operations, Zepz aims to create a more efficient and dynamic organization, better positioned to achieve its mission of serving immigrants worldwide and driving innovation in the financial sector.
* The layoffs are part of a broader strategy to secure the company's financial stability and sustainability, which is crucial for long-term growth and success.
* Zepz's ongoing recruitment for 200 roles suggests a targeted investment in key areas to support growth and enhance operational efficiency, further aligning with the company's long-term strategic goals.



The layoffs at Zepz will impact several IT functions and regional offices in Poland and Kenya. Here's how these changes might affect the company's operations and the measures Zepz is taking to mitigate these effects:

1. IT Functions Impact:
* The layoffs affect several IT functions, including database administration, development operations, and software engineering (CNBC, 2025-02-12).
* This could lead to reduced capacity in these areas, potentially slowing down the development and maintenance of Zepz's digital remittance services.
* However, Zepz has stated that the layoffs will not impact customers in any region or market (CNBC, 2025-02-12), suggesting that the company is taking steps to ensure business continuity.
2. Regional Offices in Poland and Kenya:
* Zepz is closing down business units in Poland and Kenya, which will impact around 200 staff members (CNBC, 2025-02-12).
* This could lead to a loss of local expertise and knowledge, as well as potential disruptions in customer support and service delivery in these regions.
* To mitigate these effects, Zepz is centralizing customer care and engineering teams in more centralized hubs (CNBC, 2023-05-01). This could help maintain service levels and ensure that customers continue to receive support.
3. Strategic Initiative to Optimize Operations:
* Zepz has embarked on a strategic initiative to optimize operations across the organization, which includes reducing the need for certain operational and technical capacities (CNBC, 2025-02-12).
* This could lead to improved efficiency and cost savings, but it may also result in a loss of skills and expertise within the company.
* To mitigate these effects, Zepz is investing in advanced automation and AI to reinforce its technology foundation (CNBC, 2025-02-12). This could help offset the loss of human capital and ensure that the company remains competitive.

In conclusion, while the layoffs at Zepz will have an impact on the company's operations, particularly in IT functions and regional offices in Poland and Kenya, the company is taking steps to mitigate these effects. By centralizing customer care and engineering teams, investing in automation and AI, and ensuring business continuity, Zepz aims to maintain its services and continue growing as a digital remittance provider.