U.K digital bank Monzo has confirmed plans to cut up to 120 jobs as a result of the coronavirus pandemic.
As first reported by Reuters on Wednesday, Monzo staff were informed via an internal memo that the company will be laying off up to 8% of its workforce due to the coronavirus crisis and resulting economic downturn.
“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 memo, written by newly-appointed CEO TS Anil, said.
A source close to the company said management had “exhausted every option” to avoid making staff redundant.
Around 300 staff have already been furloughed under the U.K. government’s job retention scheme and executives have waived some or all of their pay in response to the pandemic. Monzo co-founder Tom Blomfield deciding to not to take a salary for the next 12 months.
The company was also in April forced to shutter its Las Vegas-based customer support office.
According to Reuters, the redundancies will fall in Monzo’s Head Office and operations teams. The cuts are not linked to staff that volunteered to be furloughed in March, though a source said there could be some overlap.
Monzo, founded in 2015, has been having a rough time recently. Though it told Reuters back in February that it planned to hire around 500 people this year, the company has since been scrambling for funding, seeking to raise between £70 million and £80 million to see it through the disruption – at a 40% discount on its previous valuation of £2 billion.
In March, CEO Tom Blomfield – who has since moved on to take up the role of president – hit out at rumours about an imminent collapse, insisting “Monzo is not going bust”.