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| Wonga to cut one-third of its workforce in restructuring | Wonga to cut one-third of its workforce in restructuring |
| (about 2 hours later) | |
| Payday lender Wonga says it will cut 325 jobs - over a third of its staff. | Payday lender Wonga says it will cut 325 jobs - over a third of its staff. |
| Wonga says 325 posts are set to go in teams that support the UK business, affecting offices in London, Dublin, Cape Town and Tel Aviv that currently employ a total of 650 people. The Dublin and Tel Aviv offices will close. | Wonga says 325 posts are set to go in teams that support the UK business, affecting offices in London, Dublin, Cape Town and Tel Aviv that currently employ a total of 650 people. The Dublin and Tel Aviv offices will close. |
| Wonga's chairman, Andy Haste, said the business could no longer sustain its high cost base. | |
| Payday lenders have faced a slew of new regulation since last year. | Payday lenders have faced a slew of new regulation since last year. |
| Wonga is the biggest and best-known of the payday lenders in the UK, with one million active customers. | Wonga is the biggest and best-known of the payday lenders in the UK, with one million active customers. |
| The industry has run into a number of controversies in the past year including, in Wonga's case, the use of fake legal notices to chase outstanding debts. | The industry has run into a number of controversies in the past year including, in Wonga's case, the use of fake legal notices to chase outstanding debts. |
| Police recently ruled out a criminal investigation into the company over the scandal, which saw 45,000 customers pursued in this way. | Police recently ruled out a criminal investigation into the company over the scandal, which saw 45,000 customers pursued in this way. |
| The Financial Conduct Authority (FCA) took over regulation of payday lenders last April. | The Financial Conduct Authority (FCA) took over regulation of payday lenders last April. |
| In June 2014, Wonga agreed with the Financial Conduct Authority (FCA) to pay £2.6m to those affected. | In June 2014, Wonga agreed with the Financial Conduct Authority (FCA) to pay £2.6m to those affected. |
| The businesses are currently operating under interim permission from the FCA and will have to apply for full licences in due course. | The businesses are currently operating under interim permission from the FCA and will have to apply for full licences in due course. |
| They are now more tightly regulated and are no longer allowed to roll over a loan more than twice, nor attempt to reclaim payment from a borrower's account more than twice. | They are now more tightly regulated and are no longer allowed to roll over a loan more than twice, nor attempt to reclaim payment from a borrower's account more than twice. |
| When Mr Haste took over as chairman last summer, he warned the group would become smaller. | When Mr Haste took over as chairman last summer, he warned the group would become smaller. |