Wonga to halve UK workforce
Wonga have been getting it in the neck over all manner of things recently. There's been a clampdown on payday lending rules, as well as big payouts over sending threatening letters to customers from legal firms they'd made up.
Then, the company that did their pensioner-based adverts said that they didn't want to work with Wonga anymore, because of "certain practices."
And things aren't getting any better as the payday lenders are, according to Faisal Islam, going to "halve its UK workforce" thanks to the "rapidly changing market for short term credit".
Sky's Emily Purser added: "Wonga announces around 325 jobs will be lost as part of restructuring programme." The reason given is that; "Wonga can no longer sustain its high cost base".
The company says: "Wonga can no longer sustain its high cost base which must be significantly reduced to reflect our evolving business and market. Regrettably, this means we've had to take tough but necessary decisions about the size of our workforce. We appreciate how difficult this period will be for all of our colleagues and we’ll support them throughout the consultation process."
The company have also been shedding senior members of their team too, losing Justin Hubble who was general counsel and head of international regulation, who was barely in the job for a year. Wonga also lost Lucy Vernall, who worked alongside Hubble. Niall Wass quit his role as Wonga's chief executive in 2014 after 6 months at the helm, followed by his successor, Tim Weller, six months later. Wonga also lost Errol Damelin who founded the company.
New rules, big job losses and people not wanting to work with them... looks like Wonga are heading for Deathwatch.