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Fintech unicorn Xendit axes 5 percent of its workers in Indonesia, Philippines
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Illustration of financial technology (fintech). (Shutterstock/File)
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endit, a Souteast Asian financial technology (fintech) unicorn, has laid off 5 percent of its staff in Indonesia and Philippines due to the macroeconomic situation, the company has announced.
“Xendit has always tried to prepare the best business plan but the current uncertain macroeconomic situation has forced us to undergo a rightsizing of structure and team resources,” said Xendit chief operating officer and cofounder Tessa Wijaya via press statement released on Tuesday.
“This decision was based on a progressive and visionary business strategy, and it has been considered thoroughly to ensure that we are ready in facing future challenges and opportunities,” she added.
Tessa said that her company was committed to supporting the laid-off workers by giving them “suitable compensation”, which would be done in accordance with prevailing law, along with providing additional benefits such as an extension of health insurance and psychological assistance.
“Team rightsizing is a hard but necessary decision to make to optimize our short- and long-term position for the sake of the company’s well-being,” Tessa said.
Xendit has been offering payment gateway services since 2016, and the fintech enterprise expanded to the Philippines in 2020 to tap into Southeast Asia’s growth potential. The company has been eyeing Malaysia, Thailand and Vietnam for further regional expansion.
Read also: Indonesian fintechs look to greener fields abroad for continued growth
“Xendit believes in the potential of the digital economy in Southeast Asia,” Tessa told The Jakarta Post on Jul. 27.
“In a world region with one of the youngest populations and highest technology penetration, Xendit can stimulate growth in the digital economy,” she added.
“We have several reasons for expanding overseas, like customer demand, availability of human resources […] and how fragmented payment is in Southeast Asia.”
The fintech unicorn acquired a capital injection of US$300 million in a series D funding led by Coatue and Insight Partners in May this year, which was a significant amount for the company seeing as how it only managed to attract half as much in 2021.
“Xendit has grown considerably in the past years thanks to the contribution from many sides, especially our team whose dedication has helped Xendit to reach its current position. We truly appreciate all of their efforts in making Xendit what it is now,” Tessa said about the layoffs.
