UK BNPL fintech Zilch reportedly planning to lay off around 10% of its workforce
London-based buy now, pay later (BNPL) platform Zilch is considering laying off more than 10% of its workforce, according to a report from The Evening Standard.
The unicorn start-up, which raised an additional $50 million in a Series C extension in June maintaining its valuation of over $2 billion, is said to be planning a restructuring that will see dozens of jobs cut and has reportedly rescinded offers to new recruits, The Evening Standard says.
On reaching out, a Zilch spokesperson told FinTech Futures: “We are shifting our priorities from high growth towards even greater product development and innovation, and as part of this strategic shift in focus, we are planning to hire around 20 people into new positions alongside the ongoing collective consultation process for certain roles that have been placed at risk, resulting in a relatively small net adjustment to our total headcount.”
Earlier this month, Zilch announced that it had passed three million customers in a span of two years and had turned a gross profit across its product suite.
“But in the last year the world has changed, and any business that thinks it’s immune to this historic economic change is mistaken,” Zilch adds. “With millions of customers depending on us, we must continue to drive towards bottom-line profitability.”
Should the cuts go ahead, Zilch will join an ever-increasing list of fintechs to reduce the size of their workforce in recent times.
Fintech darling Stripe is cutting 1,100 jobs while Brex and MX announced layoffs last month, joining Indonesian fintech Xendit, BNPL giant Klarna, African challenger Kuda and Aussie crypto exchange Swyftx, among others.