Payoneer cuts 10% of staff months after getting UK e-money license

The end of 2022 into the start of 2023 saw a wave of job cuts ripple through the fintech industry, and after what looked like a changing of the tides, the layoffs seem to be back.

New York-based Payoneer has become the latest to join a list of fintechs affected by the job cuts, just months after the Financial Conduct Authority (FCA) granted it permission to operate in the UK with an e-money license.

The cross-border payments platform is set to cut 200 employees — around 10 per cent of its staff —  to “enhance productivity and efficiency” and “streamline the company’s organisational structure to better align operations with its growth objectives”.

As outlined in a regulatory filing made with the US Securities and Exchange Commission (SEC), it plans to implement the layoffs by the end of Q3 this year.

It intends to reinvest some of the recouped costs into the company’s growth, including hiring other roles, specifically in areas such as research and development.

According to Payoneer it estimates around $5m in charges connected with the layoffs, but also expects an annualised future benefit of around $20m.

Payoneer joins the likes of N26 and GoCardless in making layoffs over the past few months, which reduced their headcounts by 4 per cent and 17 per cent respectively in May and June this year.