Monzo cutting up to 120 jobs due to coronavirus impact

Sad news for the employees affected, and I hope they’re able to find new work quickly. Monzo being on your CV should hopefully appeal to potential employers though.

I think someone’s comment on the other forum sums everything up that’s been going on with Monzo of late, and I’ve lost a lot of faith in them.

I hope Monzo can survive COVID-19 and make a comeback of sorts, returning to their former glory, but I don’t have much hope. I know they allegedly delayed plus v 3.0 due to COVID, but I suspected that might have just been an extremely convenient excuse as it never impacted their business account launch, nor stopped other banks from quickly rolling out new features.

I’m very close to giving up and being done with Monzo now. If things don’t start to change soon and for the better, I suspect I’ll be closing my account.

Surely it shows lack in confidence in the bank itself, because it’s a bank, people still pay bills, still shop so there is a need, for staff they could have reduced costs by furlough, so it shows lack of confidence in the banks future because things are starting to get back to normal. With Tom changing rolls as well. I think there is much more going on

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A real pity for the staff, many of whom are clearly brilliant.

Sadly this will be seen by Monzo’s HR dept as a chance to reduce the numbers of straight white males (or “diversity debt,” as they’re known in Monzo HR circles).

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That remains to be seen, and I’ll be disappointed if that’s the approach they’ve taken. Ultimately the best people, regardless of race, gender, sexuality or other factors should be the ones to keep their jobs.

I find it a little bizarre that some of these forward thinking companies that focus on racial and gender diversify, tend to have a heavier weighting of minority demographs than when you look at society as a whole. A fair system, you would think, would be more in line with societal ratios as a whole.

I don’t want to get into that kind of political topic as there are very polorizing viewpoints in play and it’s easy to construe things the wrong way. My personal beliefs lie more towards pro-equity, and I don’t believe things such as race or sexuality should ever be variables considered in decision and policy making. In a true equitable society they would be irrelevant factors. Though I respect and appreciate that as a society, we aren’t there yet, hence the current struggle from minorities, and I support their cause, though not usually their methods. True equity, and true equality for that matter, in my opinion, is nonchalance, rather than what we’re seeing now.

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Well if that’s the job he’s taken… :joy::flushed:

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Damn, what other bank is cutting 8% of its work force?

What impact has COVID had on them to have to make that % number of redundancies?

Another 120 for the axe. During a pandemic as well.

That adds on to their 165 US staff who have been axed
And their current 295 furloughed staff not currently working.

If there staffing numbers are around 1500 as believed that’s 1/3rd of their staff being fired or not working.

I have the absolute memory of a fish. I even already replied here :smile: thanks @Liam for moving that.

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You and me both.

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I don’t think they’ve said.

However while it’s worth keeping in mind that they currently don’t make a profit. Other banks are not doing the same.

Starling which as far as I’m aware may not currently be profitable are not laying off any staff. They’re probably the best example.

Other banks have made decisions not to lay off any staff. HSBC specifically halting their downsizing so not to put any staff in a position of being unable to get a new job.

RBS are apparently letting go of some staff specifically in their investment company (this has been loss making for some time now). But it also looks like they plan to stagger this and pay them all for a significant period of the year.

I don’t know of any other bank making redundancies in their banking division.

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Being a digital only bank that provides a service that COVID won’t have interrupted, you’d expect the impact to be really minimal, or at least not to the point of cutting significant numbers of employers unless there are other underlying issues with your business model.

I find it hugely ironic that over on the other community, N26 blaming Brexit on leaving the U.K. was easily dismissed by a large majority, of course they left because Monzo are too good of a competitor for N26 to compete. But Monzo blames cuts on coronavirus and no one bats an eye. There has to be more going on there, otherwise we’d see it happening throughout the industry, and it’s not.

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I think the interchange fees (big chunk of income) have taken a hit due to fewer and less frequent shopping trips, but I do wonder if the pandemic is a convenient way of burying other reasons to shed staff.

I mean, they’re not the only ones. Look at the likes of Deutsche last year, N26’s UK woes, etc. Banking has not exactly been a stable sector to work in over the last 18 months or so.

Starling has 800 employees as of Feb, and roughly 1/3rd of the number of accounts I think.

If it was virus related I would have expected cuts industry wide, or at least for starling. But there seems to be no indication of that happening. In fact I think starling reversed their furlough decision for new staff as they found a way for train their new staff remotely as well.

Staring clearly had the benefit of a recent injection of cash in February as well as another one recently. They obviously have a backing that trusts the direction their going.

So it’s hard to say for the reason why monzo is cutting so many staff recently. I expect it may be a combination of things.

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This might be an indication, if it is then it’s one that clearly shows they lack a diverse income steam.

Primarily the only transactions which have had a sizeable hit have been card present. Card not present has seen decreases in some areas and increase in others. I work in that area and we’ve not only not furloughed anyone but have been actively hiring this entire time.

Interesting, are there any figures yet though?
Every courier that has delivered to me has moaned how busy they are as everyone is spending a fortune online.
Hot tubs, bbq’s, and swimming pools are sold out.
People are having landscaping done, spending out on garden and DIY stuff.
From my experience people are spending just differently

Yeah, that’s always been one of the problems with the fintech retail banks. It’s heavily reliant on those fees.

They’ve tried the nickel-and-dime approach (fees on deposits), they’ve tried the subscription model (‘Plus’ accounts), then there’s marketplace partnerships - but it’s tough out there and there are probably more competitors than the market can handle.

No, but I seem to remember reading that Monzo’s annual report is due to drop any day.

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That data seems to back up my experience too

I think when banks release spending figures for the covid-19 figure, spending will be up.

I work for a company that has actively recruited during the period, I also run my own company.

The Amazon part of it, the sales are up financially 39% year to date and I know full well I’m not the only company that has increase of online sales. Quantity of orders are up 241%

High Streets and traditional retailers are no doubt struggling. But people are still using cards to buy things, so there is still interchange fees being passed onto card issuers.

On my website sales are only up 12% year to date, but I don’t have the marketing power of Amazon.

So digital only banks shouldn’t be effected majorly by the covid-19 pandemic, people are still shopping

So Monzo are potentially using this as an excuse to downsize and increase its potential profits, what with shorter opening hours as well, which they potentially won’t increase back to previous hours.

Edited to add : People are not using Cash as much, therefore banks like Monzo are not being hit with the fees when people withdraw cash, so again they should be no worse off.

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