Buy-now-pay-later (BNPL) company Sezzle is set to trim its workforce in North America in a bid to rein in rising costs.
According to a Reuters report, the US-based firm plans to cut 20% of positions in North America.
The redundancy process will be carried out nearly across all business operations.
Once the process is completed, Sezzle is expected to realise around $10m in cost savings.
In 2020, the company had around 280 full time employees. However, Sezzle did not state its headcount in its recent 2021 annual report.
Sezzle’s personnel costs surged to $56.8m last year due to an increase in hiring.
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The company has operations in the US, Canada, India and Europe.
Sezzle CEO Charlie Youakim was quoted by the news agency as saying: “Sezzle’s growth prospects remain unchanged, and these actions position the company to maximise its long term success.”
Notably, Australia-based rival Zip signed a deal to acquire Sezzle in a $352.59m (A$491m) deal last month.
At the time of the announcement, Zip said that the consolidation is expected to deliver substantial synergy benefits to drive profitability for both companies. The combined entity will have around 8.8 million customers and 60,000 merchants in the US.
In the recent years, the BNPL space has seen an increasing number of consolidations.
This includes Zip’s takeover of Central European BNPL provider Twisto Payments in November last year.