N26 had a team of 90 employees working in their New York offices. Now it lets 9 of them go.
For example, Mitch Babineaux was one of the first ten employees of N26 in New York. He has worked as the tech recruiting partner and was focusing on recruiting talented members for the N26’s New York team.
However, with the COVID-19 crisis, N26 as other challengers is likely going to focus to stabilize its position on their major markets while expansion is not what is on their mind at this point.
And so is not acquiring new talents in the US, therefore Mitch Babineaux was one of the nine employees who were discharged.
Babineaux admitted the dismissal “came as a surprise,” but that N26 “really took care” of those it let go.
“Our severance pay is the best compared to what my friends got in other companies,” says Babineaux. “I’m pretty close to my colleagues and the US leadership team, so I know that our termination was the very last option for them,” he told to FinanceFWD.
This comes a while after N26 had extended its Series D funding round for a second time and raised and raised an additional $100m. See more about this in the full article below.
Read also: N26 raises another $100M in extended Series D
As mentioned this funding is likely going to be spent on stabilizing the N26’s European assets.
N26 commented on the New York job cuts with this statement “We shifted certain functions from our NYC office to our HQ in order to leverage synergies.”
Still, N26 is apparently holding a 3.55% share of the US digital banking app users, according to Apptopia research revealed by Sifted. If this number is accurate, it would mean N26 is leading the European challenger advance into the US market.