Zwipe has officially announced an operational “streamlining” plan that will see 15 employees depart the company, and will also involve the “lessening of R&D-related activities, restructuring of offices and subsidiaries, reduced external marketing activities, and general reductions in other operating expenditures.”
All told, the plan is expected to reduce operating costs by about NOK 14 million for this year, compared to 2022; and to lower Zwipe’s cost base by about NOK 35 million annually.
The streamlining plan comes after Zwipe completed an internal review to optimize global operations and reduce overall costs. With the development of Zwipe Pay and Zwipe Access products largely completed, the company is shifting its focus from R&D to commercialization.
While the adoption of biometric payment cards has been slower than anticipated, Zwipe remains optimistic about market potential and expects an acceleration in commercial launches in the second half of 2023. Zwipe Access, the company’s access control system, is also gaining momentum with recent proof-of-concept launches and plans for further integration with end customers.
The announcement comes after Zwipe raised NOK 100 million in capital through a successful rights issuance in Q1 of 2023. The company’s revenues for the quarter came in at NOK 1.7 million, compared to revenues of NOK 0.6 million a year ago.
The full impact of the streamlining plan is anticipated to be felt in the fourth quarter of 2023.
June 23, 2023 – by The FindBiometrics Editorial Team