Australian-born buy now, pay later company Zip Co has announced a change of leadership structure, which will see Larry Diamond step aside as CEO.
Cynthia Scott, who has been the CEO of Australia and New Zealand since November 2021, will now assume the role of Group CEO.
Zip co-founders, Peter Gray and Larry Diamond, will now assume the roles of ANZ and US CEOs respectively, in a bid to drive performance in the company’s two core markets. Diamond, who relocated to the US in October 2022, will lead the business in North America and will continue to serve on the board of the company as an executive director.
Scott will also join the board as managing director later this month and Gray will act as board adviser.
The company, which was once an ASX-darling, announced the news to the Australian Securities Exchange, saying the move reflects the company’s lifecycle and maturity.
“Over the past 18 months, Cynthia, Pete and I have collaborated very closely and will continue to work in lock step to leverage our respective strengths as we focus on Zip’s next stage of profitable growth and cementing Zip’s position as the better way to pay,” Diamond says, adding the move allows Gray and Diamond to remain “close to the core of the business”.
It comes as Zip enters its tenth year of operation. The company, which hit a share price high of $12.51 in February 2021, experienced a sharp decline in line with the overall decline of the buy now, pay later sector. At the time of writing, the company’s share price was $0.42, with the share price increasing slightly on the news of the leadership restructure.
Zip revealed it completed a $24.7 million equity raise in late June to reduce its corporate debt.