Kerry-based fintech Fexco has said the impact of Covid-19 on its business has forced it to seek 150 voluntary redundancies.
Job losses are set to come at Fexco’s Irish operation, which is headquartered in Killorglin, with offices in Cahersiveen and Dublin. According to RTÉ, the Kerry-based fintech is hoping to reduce its staff by at least 150 through voluntary redundancies.
The cuts are expected to affect all aspects of the business in Ireland, but separate plans are being drawn up for the company’s international operation, with details set to be announced in the coming weeks. The company employees 2,500 staff globally, with 1,000 of those based in its Killorglin headquarters.
Fexco’s chief executive, Denis McCarthy, has blamed the economic impact of the Covid-19 pandemic for the cuts. He said in an email to staff that international travel will likely be impacted for years to come, which the company heavily relies on as it focuses on foreign exchange and transfers.
‘Unthinkable just a few months ago’
“Early on in the crisis, rather than cutting jobs, we took steps to reduce costs through a three-month phase of graduated pay cuts. Unfortunately, we now need to reduce our cost base further to protect the business for the long term,” McCarthy wrote.
“Our management teams have completed their business reviews to support the next phase of our response plan. Every team has been tasked with conducting a root-and-branch review of all non-pay operating costs and has now been set a specific target of reductions to achieve for the remainder of 2020 and to downsize budget expectations for 2021.”
He went on to say that the position the company finds itself in would have been “unthinkable just a few months ago” and that it would have been impossible to maintain the number of staff given the severe downturn in business.
In February, Fexco opened a new research development and innovation centre in Killorglin for 125 of its staff to focus on its global R&D innovation and IT activities.