Australia's Zip cuts 20% of workforce: report

The CEO did not confirm whether the company is downsizing its workforce.

Australian buy-now-pay-later company, Zip Co. is undergoing operational and cost optimisations after a recent review as shared by a company official, reported Reuters.

The industry is facing challenges due to heightened regulatory scrutiny, declining valuations, reduced customer spending, and rising interest rates.

In response, Zip has reportedly reduced its workforce by up to 20%, according to a report by Reuters.

As of June 30, 2022, the company had 1,498 employees.

Zip's ANZ CEO Cynthia Scott stated in an emailed comment to Reuters, after a recent review, they have made decisions to streamline their operations and cost base.

However, the official did not confirm whether the company is downsizing its workforce.

ALSO READ: 13.36 million credit cards in circulation in Australia: study

In May, Australia announced its intention to regulate BNPL services as consumer credit products under new laws, which means companies like Zip will fall under the oversight of the Australian Securities and Investments Commission (ASIC).

Here's more from Reuters.

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