Pay day loan firm to close office in Dublin
A CONTROVERSIAL pay day loan provider which once charged an annual percentage rate (APR) of almost 6,000pc is expected to shut its Dublin office with the loss of 175 jobs.
Britain's biggest short-term loan provider, Wonga, announced its intention to close its office on Sir John Rogerson's Quay by mid-2016.
Wonga chairman Andy Haste said the company "can no longer sustain its high cost base, which must be significantly reduced to reflect our evolving business and market".
"We've had to take tough but necessary decisions about the size of our workforce," he said.
A total of 325 jobs could go as part of the restructuring, with its office in Tel Aviv, Israel also due to shut later this year.
As part of the restructuring plan, Wonga will now focus on its core consumer businesses in the UK and overseas.
The group is aiming to make overall cost savings of at least €34m across the next two years, after a period of rapid expansion that saw costs treble between 2012 and 2014.
Wonga's downsizing comes following a series of controversies which hit the industry last year.
The company, which employs 950 people internationally, was forced to pay out €3.5m in compensation to 45,000 customers last June after it issued fake legal letters to chase outstanding debts.