Switzerland-based fintech firm Numbrs Personal Finance has axed half its workforce, resulting in 62 employees being laid off.
The retrenchment is as a result of a funding round of the company that was already signed but did not end up coming to fruition.
The funding fell through because of the Covid-19 pandemic causing economic uncertainty in the country, the company said.
The layoffs affected employees who were working at the Zurich headquarters.
Numbrs is obligated to give dismissed employees a four-week notice period during which they can make suggestions for suitable replacements to layoffs and cuts.
Numbrs managing partner Fynn Kreuz said: “The company was on the verge of signing a multi-million dollar investment contract, but even though the contract was signed, the investor did not transfer the money.
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“We are extremely sorry that we have to initiate a restructuring program due to the current developments and will do everything possible to make this process as socially acceptable as possible.”
Founded in 2012, the Zurich-based firm developed a mobile banking app that aggregates bank accounts and allows users to apply for bank accounts, credit cards, loans and insurances.
The company has raised more than $150m so far from investors like Sovereign Wealth Fund of Dubai (ICD), venture capitalist Ronald Cohen, and the Mirabaud Group.