The digital bank unicorn Revolut has announced to lay-off 60 of its employees as it admits the COVID-19 has some negative impact already.
This was announced this Monday as the CEO Nikolay Storonsky informed staff about the cuts, according to Financial News sources.
The challenger has confirmed the news, telling FN it “had to make cost savings, where possible, since the lockdown”.
“Like every business, we have made every effort to protect every job, with initiatives such as salary sacrifice.”
“But despite these efforts, we have now had to announce redundancy of around 60 roles across our 2,200 strong workforce globally. We are doing everything we can to support people in finding new roles where possible.” a Revolut’s spokesperson explained the step.
Revolut’s management has already attempted to reduce operational costs. They offered employees company shares while cutting monthly salaries. See more about this in the article below.
Read also: Revolut offers staff swap salary for shares
So far, Revolut was amongst those challengers that were able to keep their employees in positions. The competitor Monzo bank has already shut down its Las Vegas customer center and furloughed part of its employees while N26 has cut part of the jobs of their New York office.
It would seem that challengers had great plans with expanding to the US and furthermore but with the coronavirus crisis, their expansion plan appears to be postponed.
Nikolay Storonsky is consistently claiming, that Revolut is “cash-heavy” after securing $500M in funding.
Yet the funding money is more likely to be invested to Revolut’s app options, rather than to keep jobs. For example, Storonsky announced, that they are about to acquire some smaller fintech firms or now-struggling travel aggregators to provide their customers with in-app travel ticket purchases and so on.