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June 4, 2020

Covid-19 fallout: Digital bank Monzo to slash 120 jobs

British digital bank Monzo has decided to axe up to 120 jobs as the ongoing Covid-19 pandemic begins to hurt its business, Reuters reported citing a memo.

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The layoff accounts for 8% of the company’s total workforce and will mainly affect Monzo’s Head Office staff and operations teams.

In the memo, Monzo said: “Unfortunately we haven’t been able to achieve the goal of preventing the risk of redundancy at this time. It’s genuinely heartbreaking to share the news.”

These redundancies will not include the employees that have volunteered to be furloughed albeit, with some overlap, the report added citing a source familiar with the matter.

The source said: “The government has been clear the furlough scheme should not be abused if redundancies are planned anyway. This was based on our understanding of the impact of the crisis.”

Launched last year in the US, the bank has incurred severe losses and exhausted all its cash in fuelling its growth by onboarding more than four million users.

The source added that talks are ongoing with investors over a fundraising round of £70-80m.

Founded in 2015, Monzo previously planned to hire around 500 people this year to continue its growth.

However, the Covid-19 pandemic made the outlook worse for the bank since then.

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Navigate your business through the ‘new normal’

COVID-19 continues to dominate headlines the world over. It has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities.  Faced with an explosion of conflicting information on how to plan and implement successful recovery strategies, decision-makers are in dire need of a single, reliable source of intelligence.   GlobalData’s COVID-19 Executive Briefing gives you access to unparalleled data and insights to successfully navigate the uncertain road to recovery across the world’s largest industries. Understand every aspect of this disruptive theme by delving into: 
  •  COVID-19 infection update, with statistics on the spread, testing by country, as well as the latest data on vaccines and therapeutic developments 
  • Economic impact overview, covering stock market indices, GDP, unemployment rates, policy responses & GlobalData’s economic recovery scorecards 
  • Sector developments, with access to sector insight summaries, cross-sector indices and the leaders and laggards in each industry vertical 
Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today. 
by GD50 Explorer
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