Wednesday 3 June 2020 7:25 pm

Digital bank Monzo to cut up to 120 jobs due to coronavirus

Digital bank Monzo will cut up to 120 jobs as a result of the coronavirus pandemic, it was revealed today.

In an internal note seen by Reuters, the cuts, which amount to about eight per cent of the bank’s workforce, were announced.

Read more: Monzo co-founder Tom Blomfield steps down as chief executive

The memo 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”.

The bank, which was founded in 2015, said earlier this year that it was planning on hiring 500 more staff this year as it sought to continue its rapid expansion.

Monzo, which is one of the darling’s of the UK fintech sector, has been hit hard by the current crisis.

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In May the challenger bank reportedly raised a fresh round of cash from investors at a 40 per cent discount to its previous fundraising.

The Financial Times reported the fintech was planning to raise between £70m and £80m in the current round, from both new and existing investors, amid worries about the impact of coronavirus.

The bank is closing its customer support office in Las Vegas, and is furloughing up to 295 staff in the UK. 

Read more: Monzo faces steep valuation drop in coronavirus funding round

Additionally, senior management and the board have offered to take a 25 per cent cut in salary.

Chief executive and co-founder Tom Blomfield also stepped down in May to become the firm’s president.