Around four percent of N26’s 1,700 employees will lose their jobs. They are to receive “comprehensive severance packages”. The fintech wants to be in the black by 2024.
At first it seemed as if, unlike its competitors, N26 would get through the crisis unscathed. Despite rising interest rates and high inflation, the fintech has not had to resort to austerity measures – until now. The company announced today that it is laying off 71 employees. Around four percent of the entire workforce of over 1,700 people are affected by layoffs. “The past year has seen significant and long-lasting changes in the global business environment,” the statement said.
The fintech now wants to focus on “strategic priorities” and will have to adjust its personnel structure accordingly. “As part of this process, managers at N26 analyzed their respective staffing needs in detail and adjusted team structures where necessary,” the company said. The dismissed employees are to receive “comprehensive severance packages” from N26, and the company also assures “further support”.
Other fintechs have already carried out layoffs in the past year. This includes, for example, the neobroker Trade Republic, which cut jobs in June 2022. Shortly before, the founders collected around 250 million euros in an expansion of their Series C. The Berliners justified the move by prioritizing profitable tech projects. Another example is the banking service provider Solaris, which fired almost ten percent of its 750 employees in October 2022 – and is also planning a change in strategy.
N26 promises to be in the black by 2024
The recent layoffs at N26 suggest that they, too, need to become more profitable faster. According to the current annual report, the Berliners made losses of around 172 million euros in 2021. The financial regulator Bafin also limited the growth in new customers to 50,000 per month because it was not convinced by the money laundering prevention controls. Existing investor AllianzX is now said to be planning to sell N26 shares and thereby decimate the fintech’s enterprise value to three billion dollars. The fintech remains stubborn: N26 wants to be in the black by 2024.
There was already a decline in the workforce at N26 two years ago. At that time, however, the company did not carry out any layoffs – the employees resigned themselves. Between March 2020 and March 2021 at least 300 employees are said to have left the fintech of their own volition, including the former HR manager Diana Styles. At the time, the company explained to the start-up scene that the fluctuations were “usual”.