PAYDAY LOAN COMPANY Wonga is to close its Dublin office, shedding 175 jobs.

The company announced it would have a “strategic refocus” on its consumer businesses, leading to the loss of 325 jobs in total, more than half of that coming from the Sir John Rogerson’s Quay office.

The company says it will immediately launch a formal, collective consultation period for all individuals who are at risk of redundancy, which will run for 30 days, with the full transition expected to be complete in 12 months.

Group chairman Andy Haste said that the company has to cut costs and support offices in London, Dublin, Cape Town and Tel-Aviv would be cut.

“Wonga can no longer sustain its high cost base which must be significantly reduced to reflect our evolving business and market. Regrettably, this means we’ve had to take tough but necessary decisions about the size of our workforce. We appreciate how difficult this period will be for all of our colleagues and we’ll support them throughout the consultation process.”

The company, which before regulations could charge interest rates as high as 5,800%, agreed to pay €2.6 million in compensation to 45,000 last year after sending legal letters from fake law firms. It also wrote down the debt of 330,000 customers, wiping £220 million of debt.

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