Vipps is laying off 100 employees – and lost more than a billion last year

Vipps is laying off 100 employees – and lost more than a billion last year

It was Vipps Mobilepay's first full financial year after merging with Danish Mobilepay last year. Then the loss increased by 106 million compared to the results of the two companies in 2022.

This results in a total deficit of $1.09 billion, the bank's newspaper wrote Bank transfer And E24.

Increased income, but large expenses

Revenues have already risen by 31 percent, equivalent to DKK 292 million, in the past year.

“We've been through a year of consolidation where we've built a new platform, while at the same time running each of our platforms in parallel. This creates very significant costs,” Rune Garborg, director of Vipps Mobilepay, tells BankShift.

He points out that at the same time the company achieved 36 percent growth in online shopping, which “exceeded all expectations.”

“Among the new Norwegian and Danish online companies, I think almost everyone chooses to include Vipps Mobilepay as a payment option,” he adds.

But even though income rose, so did costs. Last year's accounts show expenses totaling NOK 2.7 billion.

Garborg describes 2023 as the year of consolidation, which costs a lot of time and money.

Leave 100

The company is now also planning to close its office in Vilnius, the capital of Lithuania. This office was originally part of the Danish group before the merger, writes the Niche newspaper.

This means that just over 100 employees will lose their jobs.

The company incurred payroll expenses of more than DKK 800 million last year, in addition to significant transaction expenses.

Vipps is also working on a solution where tipping will be possible across national borders in Norway, Finland and Denmark, as well as a separate app in Sweden, the company revealed to Bankshift.

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Nesjavesen also wrote that the company has 11.5 million users today, and that a total of 1.24 billion transactions were carried out in the three countries in 2023.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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