CAB Payments Holdings announced plans to reduce its workforce by approximately 20% as part of a strategic cost improvement exercise.
CAB Payments to Cut 20% of Workforce
The company announced the move in its 2024 pre-close trading update on Thursday, explaining that it is aimed at aligning the company’s operational structure with its growth ambitions and improving operational leverage.
The decision comes in response to challenging market conditions, including a stronger dollar, reduced aid flows, and political uncertainty impacting demand for cross-border payments.
The factors led to softer performance for the company, with gross income for 2024 expected to be around £105 million, down from £137 million in 2023.
Despite the challenges, CAB Payments reported a 7% increase in total group volumes to £37.2 billion, outperforming the market-wide SWIFT payment flows, which saw a 4% decline.
The company continues to expand its network, adding 60 new active clients and increasing its bank counterparties by 18% to 390.
The restructuring, expected to take place in the first quarter of 2025, will involve a redundancy programme, subject to consultation.
CAB Payments aims to counteract the costs associated with strategic hires, inflation, and national insurance rises, maintaining flat staff cost growth in 2025. The company plans to continue investing in AI and automation to enhance operational efficiency.
CEO Neeraj Kapur said: “As part of the increased focus on performance we are taking significant steps to re-align the cost base to our strategic growth plans; meaning we can do more with less.”
