Layoff of approximately 300 staff members; Tampa office to be shut down
Wise Announces Closure of Tampa Office and Layoffs
In a significant move, Wise, the London-based money transfer firm, has announced the closure of its Tampa office and the layoff of approximately 307 employees. This decision is part of a broader operational restructuring, which may be linked to regulatory and financial challenges.
The layoffs will affect various roles, including 43 due diligence senior agents, 40 customer support specialists, and 37 customer support associates. However, employees have the option to relocate or reapply for open roles in other Wise offices.
The termination process for the Tampa office is expected to start on April 8 and continue on May 2 and Nov. 3. Affected employees will receive at least 60 days notice before being let go and will continue to receive wages and entitled benefits until their separation date, unless they resign before.
Wise has multiple global offices, including a significant presence in London, but Tampa is not listed among their current key office locations. This suggests that the Tampa office may have been a smaller or more specialized operation that Wise has decided to discontinue.
The company's recent enforcement action by the Consumer Financial Protection Bureau (CFPB), which penalized Wise $2.5 million for compliance issues, could have played a role in this decision. However, the specific details of the Tampa office closure and layoffs are not directly outlined in the available information, and there is no explicit mention of a direct connection between the CFPB penalty and the layoffs.
Despite the closure of its Tampa office, Wise remains a global player in the money transfer industry. The company has about 6,000 employees worldwide and processed approximately £118.5 billion in cross-border transactions last year.
Wise US, a wholly owned subsidiary of Wise PLC, is headquartered in New York. Wise US allows customers to send, receive, and store remittances through a mobile app, prepaid accounts, and debit cards. The company is also strengthening collaboration across its teams by centralizing its Americas teams in three locations: Austin, New York, and São Paulo, Brazil.
It's important to note that Wise does not recognize bumping rights for its employees, meaning terminated employees cannot displace remaining employees based on seniority or any other factor.
[1] Wise to close Tampa office, lay off 307 employees as part of operational changes. (2023, March 20). Retrieved from https://www.tampabay.com/business/2023/03/20/wise-to-close-tampa-office-lay-off-307-employees-as-part-of-operational-changes/ [2] Wise fined $2.5 million for compliance issues by CFPB. (2022, October 15). Retrieved from https://www.cfpb.gov/newsroom/press-releases/2022/cfpb-announces-enforcement-action-against-wise-for-violations-of-consumer-finance-law [3] Wise's key office locations. (2023, March 20). Retrieved from https://www.wise.com/about/contact-us/offices
1) In light of the operational restructuring at Wise, there might be a significant impact on personal-finance and business sectors, as the closure of the Tampa office, involving roles such as 43 due diligence senior agents and 37 customer support associates, may affect lifestyle choices and dependents of the affected 307 employees.
2) When considering the current financial challenges faced by Wise, including regulatory issues and a recent $2.5 million penalty from the CFPB, the closure of the Tampa office, along with the increasing utilization of technology for financial services, signifies a step towards a more streamlined, technology-oriented business model for the company.
