British Remittance Firm Zepz Implements Workforce Reductions, as it Embraces AI-Driven Efficiency

British digital remittances firm Zepz, is undertaking a significant restructuring initiative, by leveraging AI-driven automation to streamline operations, which has resulted in job cuts and the closure of operational units in Poland and Kenya.

This move will impact approximately 200 employees, primarily within the company’s IT divisions, affecting roles in software engineering, database administration, and development operations.

Zepz currently employs around 1,000 people worldwide, the latest round of layoffs, accounts for roughly 20% of its global workforce. The London-headquartered fintech company stated that the decision to downsize part of its workforce, aligns with its long-term strategic goals and efforts to streamline operations.

A company spokesperson confirmed the restructuring to CNBC, attributing the changes to the successful completion of Zepz replatforming efforts, which have incorporated advanced automation and artificial intelligence.

“Following the successful completion of re-platforming efforts, bolstered by advanced automation and Al, Zepz has embarked on a strategic initiative to optimize operations across the organization. This transformation has reinforced the technology foundation and reduced the need for certain operational and technical capacities, prompting a proposed reduction in roles as part of the overall plan”, the spokesperson said.

In an internal memo shared in January, Zepz CEO Mark Lenard acknowledged the difficult nature of the decision, emphasizing that the restructuring was essential for the company’s continued success. “While these changes impact our colleagues and friends, they are crucial to strengthening our ability to serve immigrants worldwide,” he stated. He also clarified that this was not a shift in company strategy but rather a prioritization of efficiency and resource allocation.

He said,

“This is a difficult choice, which impacts the lives of our colleagues and friends. This is also a choice that is critical to the success of our mission to serve immigrants everywhere. Both facts are true, at the same time. To be clear, this is not a change of strategy, We’re doubling down on our mission in an effort to expand our impact faster. In some places, this will mean we’ll need to continue to ruthlessly prioritize. In others, we’re going to get more efficient. In many cases, it will involve rethinking how we do things today.”

By leveraging Al-driven automation, Zepz is refining its internal processes, particularly within IT functions such as database management, development operations, and software engineering. This shift allows the company to streamline tasks that were previously labor-intensive, improving speed, accuracy, and scalability.

Notably, Zepz maintains that the layoffs will not disrupt services or impact customer experience, noting that the company remains committed to its mission of providing accessible financial solutions for migrants globally. This latest downsizing by the fintech firms follows previous cost-cutting measures implemented. In 2023, the company laid off 420 employees approximately 26% of its workforce at the time followed by an additional 30 role reductions later that year.

Zepz joins a growing list of companies worldwide such as JPMorgan Chase, Mastercard, and Goldman Sachs, amongst others, that are integrating Al technology into their operations to enhance efficiency, reduce costs, and optimize workflows.

The adoption of Al in financial technology and remittances is becoming a strategic move for many firms looking to stay competitive in an evolving digital landscape. Companies across sectors from banking and e-commerce to logistics and customer service are embracing Al-powered solutions to enhance user experiences, prevent fraud, and automate repetitive tasks.

Also, by automating routine tasks, AI shifts responsibilities, enabling employees to focus on strategic, creative, and decision-making roles.