Monzo to cut 120 roles as it extends cost-cutting efforts amid coronavirus downturn

By Oliver Smith on Thursday 4 June 2020

Digital Banking

Generous redundancy packages and career support for those sadly affected.

Monzo to cut 120 roles as it extends cost-cutting efforts amid coronavirus downturn
Image source: Monzo.

Monzo is cutting around 120 roles with redundancies expected to affect around 8 per cent of the digital bank’s total staff.

The move was announced yesterday in an all-hands meeting with Tom Blomfield and new CEO TS Anil, and comes after Monzo previously furloughed 295 staff in the UK, and announced a planned 165 redundancies with the closure of its Las Vegas customer support office.

Its decision to cut additional roles also comes after then-CEO Tom Blomfield decided to forgo his salary for 12 months and amid reports that Monzo is working to close a £70m-£80m funding round, albeit at a 40 per cent discount.

According to sources close to the bank, the redundancies are “precautionary” to ensure resilience at the company and come only after the bank exhausted every other option, including furloughing and salary reductions.

Departing employees are also said to be offered generous redundancy packages and career support.

After announcing at the start of 2020 that the bank’s headcount would be growing from c.1,500 to around 2,000, the bank now could end the year with a net reduction in headcount.

Monzo’s careers page only lists a small handful of jobs, and according to reports on the bank’s community forum a hiring freeze is in place.

Monzo’s 2020 annual report is due in the coming weeks and will shine a light on the bank’s cost base which it is now looking to reduce, likely along with new CEO TS Anil’s view on coronavirus and the bank’s strategy going forward.

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