Sezzle is to cut 20 percent of its North American employees to save $10 in annual running costs.

The company – which provides buy now pay later services – has made the decision as a path towards profitability and free cash flow, while continuing to position the business for long-term growth. 

Charlie Youakim, Sezzle CEO and Executive Chair said, “Sezzle has experienced significant growth in its history and is now at an important juncture.” 

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Youakim continued: “Sezzle’s growth prospects remain unchanged and these actions position the company to maximize its long-term success.” 

He claimed the job cuts were done seriously and the company greatly valued its employees during the process. 

The cost savings like salaries and benefits will take place after a reduction across almost all business operations and will help in the company’s smooth run.

In late February, the firm was bought for $352 million by the Australian BNPL company Zip. The amalgamation intends to support both the companies’ objectives to lead the BNPL industry.  

Larry Diamond, co-founder and CEO of Zip stated the purpose was to bring “Zip and Sezzle together under a transformational transaction that is expected to deliver immediate scale and enhanced growth, which will support our path to profitability.”

He added: “Combining with Sezzle positions us as a leading global BNPL provider and prioritizes our ability to win in the important U.S. market.” 

Sezzle is headquartered in Minneapolis, US, and operates in the United States and Canada. 

The company recently partnered with travel payments platform Yapstone to create installment payments to vacation rentals.

Source: PYMNTS

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