Home Business NewsBusiness Wonga is cutting a third of its jobs. Here's why

Wonga is cutting a third of its jobs. Here's why

by LLB Editor
24th Feb 15 11:22 am

Beleaguered payday lender Wonga is planning to cull 325 jobs, more than a third of its workforce, in a bid to save £25m.

The payday lender is closing its offices in Dublin and Tel Aviv.

The news comes as the Financial Conduct Authority (FCA) ruled that borrowers will never have to pay back more in fees and interest than the value of the loan.

Wonga has also announced the sale of its Everline division which lends to small businesses. Robin Klein, Wonga’s former chairman who was on the board for over eight years, is also stepping down.

Wonga’s troubles began when it sent fake legal notices to over 45,000 customers to chase outstanding debts.

In June 2014, after the FCA took over regulation of payday lenders, Wonga was ordered to pay £2.6m in compensation to affected customers.

In a statement, Wonga’s new chairman Andy Haste said: “Wonga can no longer sustain its high cost base. We’ve had to take tough but necessary decisions about the size of our workforce.”

Now read:

1 comment

Bill Shacklock February 24, 2015 - 2:53 pm

Wonga is a dirty business which made the lives of thousands of people miserable by using deceitful and underhand methods. It should have been shut down a long time ago.

Leave a Comment

CLOSE AD

Sign up to our daily news alerts