Flywire Cuts 125 Jobs as Student Visa Restrictions Hit Revenue

Key Takeaways

• Flywire laid off 125 employees (12% of staff) on February 25, 2025, due to impacts from student visa policy changes.
• Canada’s 2024 Student Direct Stream cancellation led to a $3 million loss in Q4, hurting Flywire’s tuition payment revenue.
• Flywire is diversifying with AI investments, EMEA market growth, and Sertifi acquisition to reduce reliance on student tuition payments.

Flywire, a Boston-based company that handles cross-border payments, has announced the layoff of 125 employees, amounting to about 12% of its workforce. These layoffs stem from challenges in the international student market, particularly due to changes in student visa policies in key countries. The decision, shared on February 25, 2025, highlights the difficulties Flywire faces as external factors disrupt its main revenue streams.

Why Were the Layoffs Needed?

Flywire Cuts 125 Jobs as Student Visa Restrictions Hit Revenue

The primary reason for the job cuts is the slowdown in international student visa approvals. Countries like Canada 🇨🇦 and Australia 🇦🇺, where many international students study, have made recent policy changes that directly impacted Flywire’s operations.

For instance, Canada eliminated its Student Direct Stream program late in 2024. This program allowed international students to fast-track their visa applications but only if they prepaid full tuition for the year. The arrangement suited Flywire, which processes such payments, and its removal led to a major revenue hit. In the fourth quarter alone, Flywire reported losing $3 million due to the program’s cancellation. On top of that, Canada has faced declining numbers of student visa applications overall, further hitting Flywire’s critical revenue source.

Australia’s new visa policies also began affecting student numbers around the same time, albeit to a lesser extent. However, Flywire expects Australian trends to worsen in 2025, adding to their challenges.

Financial Situation and the Road Ahead

Despite these headwinds, Flywire still reported a relatively strong financial performance for 2024. The company saw its revenue (excluding money earned from smaller services) grow by 24%, while its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins improved by 540 basis points. These results suggest that Flywire has been operating efficiently in areas outside of its student payment services.

That said, the outlook for 2025 looks gloomy for some of Flywire’s largest markets. The company has forecast a 30% revenue decline in Canada and Australia’s education markets due to the ongoing visa policy challenges. To manage these expected losses, Flywire plans to adjust its strategy and focus on areas that hold greater promise for growth.

Adapting to Changes with Strategic Moves

The recent layoffs are part of a broader restructuring plan designed to position Flywire for the shifts in its customer base. The company is concentrating on improving its technology with new investments in artificial intelligence (AI) and software development. It also aims to streamline its operations by speeding up internal processes and ensuring its services meet the needs of its remaining clients.

Additionally, Flywire is targeting growth in regions where it has seen success recently. In Europe, the Middle East, and Africa (EMEA), Flywire’s education business grew by over 50% in the fourth quarter of 2024 compared to the same period in 2023. The United Kingdom 🇬🇧, in particular, stood out as a region of opportunity, as Flywire’s team there achieved strong sales numbers and secured more business from their existing clients. These regions may help compensate for some of the losses in Canada and Australia.

Expansion Through Acquisitions

Another major development for Flywire was its acquisition of Sertifi, also announced on February 25, 2025. Sertifi is a company that integrates its software with hotel property management systems. With this purchase, Flywire hopes to gain a stronger foothold in the hospitality sector. Sertifi works with over 20,000 hotels globally, which could help Flywire grow its travel-related revenues. By entering into new markets like this, Flywire is diversifying its operations, reducing its reliance on any single revenue stream like student tuition payments.

Broader Industry Picture

Flywire’s layoffs are not an isolated case but part of a broader trend seen in the tech and financial industries. Early 2025 has been marked by a wave of job reductions across several major corporations. Meta, Southwest Airlines, and Workday are just a few examples of companies cutting considerable portions of their workforces.

In January 2025 alone, U.S.-based organizations announced nearly 49,800 job cuts, according to a report from Challenger, Gray & Christmas. While this is the lowest number of January job losses in the past three years, it still represents a 28% increase compared to December 2024.

This context helps explain why Flywire, despite its efforts to adapt, finds itself forced to make similar workforce adjustments. Challenging economic conditions and sudden regulatory policy changes have created a wave of uncertainty for businesses that rely heavily on international markets.

Long-Term Outlook for Global Education

Despite the current obstacles, Flywire remains hopeful about the future of international education. CEO Mike Massaro has voiced confidence that global trends will eventually bring a boom in student mobility. Factors such as changing demographics and competition among countries to attract the best talent are expected to play a big part in re-energizing this market. Massaro’s optimism suggests that Flywire is planning for better days ahead once the current conditions stabilize.

Flywire has already begun positioning itself to take advantage of a rebound. It is expanding its payment systems and enhancing its products to better serve its partners when visa approvals start recovering. By broadening its operations and focusing on scalable models, Flywire could still emerge strong despite the short-term difficulties.

The Human Cost of Layoffs

Unfortunately, the cost-saving measures come at a real cost to employees. The 125 staff members affected by the layoffs represent a wide range of departments across the company. While Flywire announced its intention to support these workers during their transition, the process is undoubtedly difficult. CEO Mike Massaro expressed his gratitude for their dedication, emphasizing that the decision was necessary for Flywire’s long-term interests.

Flywire’s restructuring highlights the tensions that often arise between a company’s duty to preserve financial stability and its responsibility to its workforce. For the affected employees, these layoffs are a reminder that today’s job market, particularly in tech-related fields, remains highly unpredictable.

Future Challenges and Opportunities

Flywire’s challenge is not solely about revenue but also about navigating unpredictable regulatory and economic conditions. Changes in immigration and visa policies in countries like Canada and Australia can drastically reshape the landscape for businesses like Flywire, which rely on international student flows. Flywire’s ability to pivot and adapt to these changes will define whether it thrives or struggles in the coming years.

At the same time, Flywire is actively working to rebuild through market diversification and industry partnerships. For instance, its move into the travel sector through Sertifi could help offset losses in its education business. On the education front, its continued investments in the UK 🇬🇧 and other strong-performing regions demonstrate a commitment to finding growth even in challenging times.

For readers interested in more information about changes in visa policies or looking for official updates, the latest details regarding student visas in Canada are available on the Government of Canada’s official website.

Meanwhile, analysis from VisaVerge.com also points out that while layoffs like these can deeply impact companies and employees, they often encourage businesses to sharpen their focus on areas of opportunity. Such shifts could lay the foundation for a stronger, more sustainable business model over time.

Closing Thoughts

Flywire’s layoff of 125 employees highlights the complex dynamics of an evolving global education market. While the company has faced setbacks due to visa policy changes in Canada and Australia, its strategic moves—like restructuring, regional focus, and diversification through acquisitions—underline its resilience. As the global student market adjusts to new norms and demographic shifts, Flywire is positioning itself for future success, even amid today’s challenges.

Learn Today

Cross-border payments → Transactions involving the transfer of money between individuals or businesses in different countries, often requiring specialized services.
Student Direct Stream (SDS) → A Canadian program that expedited visa processing for international students who prepaid full tuition, recently discontinued in 2024.
Adjusted EBITDA → A financial metric assessing a company’s profitability before accounting for specific financial costs like taxes and depreciation.
Restructuring plan → A strategy implemented by a company, often involving layoffs, to realign operations and improve efficiency during challenging times.
Demographics → Statistical data about populations, such as age or nationality, often used to predict market trends like global student mobility.

This Article in a Nutshell

Flywire’s decision to lay off 125 employees reflects mounting pressures from evolving student visa policies in Canada and Australia, disrupting its core revenue streams. However, by diversifying into the hospitality sector and targeting growth regions like the UK, Flywire is adapting strategically, proving resilience amid global challenges. Innovation may secure its future success.
— By VisaVerge.com