US BNPL player Sezzle is to cut 20% of its workforce following confirmation of a takeover by Australian rival Zip.
The job losses will cut across all business lines as the company bids to streamline its operations following a period of exceptional growth.
The company says it will achieve costs savings of around $10 million from salaries and benefits as it looks to "position the business for long-term growth while establishing a path toward profitability and free cash flow”.
The move comes just a week after Zip confirmed a A$491 million deal to acquire Sezzle. The combination of Zip and Sezzle is expected to result in pro forma 8.8 million customers and pro forma 60.5k merchants in the US.
Zip said it was targeting cost savings of A$60-80 million from the transaction from operating expenses and net margin opportunities. The company reassured that it intended on retaining a significant footprint in Minneapolis, Minnesota, where Sezzle is headquartered in the US.