Britain's Monzo cutting up to 120 jobs due to coronavirus impact

Definitely not a small number, and between 150-200 people also lost their jobs a month ago when the Vegas operation was shut down. So that’s close to 400 people, which will have a seismic impact on the internal culture.

I have no way of knowing who will be impacted, but purely on statistics there will undoubtedly be some people I was very close to. I feel so sad about the whole thing :pensive:

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But it did, and to me, really emphasised the fragility of Monzo as a business. Despite their customer numbers in the U.K., it’s hit them harder than all of their competitors from what I’ve seen, and a lot of the issues started to become clear before coronavirus was even a thing. Starling seem to be chugging along just fine, introducing new and helpful features throughout the pandemic to support their customers. N26’s valuation didn’t drop like Monzo’s did, despite coronavirus and the fact they just pulled out of a market . No other Fintech appears to be facing the same struggles they are, or at least not to the same magnitude.

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That’s a moot point now, since N26 are gone.

The naming convention of my account was not because I was fan boy but because I managed to get Apple Pay working before they had announced, so thought they had quietly released it. So I made an account on here to let people know.

You can see that for yourself from my history. I didn’t really interact here much after that until they closed the U.K. brand, and I was looking for something else. And with the advice I received here I was able to try out and find new services, some of which I like more than N26.

For what it’s worth, I loved Monzo before they became a bank. It was when I went full Monzo that issues started to take hold and things started to annoy me about their UX and approach. I still like Monzo as a brand and want them to succeed.

Some people here sure do like to target my personal opinions on the basis of my username rather than the actual content of my comments, huh. :man_shrugging:

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I’m so sad to hear this. Firstly for the people who will be losing their jobs. Having had my job made redundant twice in the past, I know how it feels.

Best of luck to all of you. Having Monzo on your CV should surely prove to any new employers you’re worth hiring.

It also makes me sad as I am a big supporter (and investor) in Monzo and I want them to do well. The product is truly great. It’s hard to see any business not being negatively impacted by the current climate.

Lastly, I can’t help thinking today that the launch of Monzo Plus is more crucial that ever? I know it was almost ready to launch before coronavirus hit and was delayed because of it. I for one am eager to sign up as I’m sure many people will be.
Surely this is a chance for Monzo to raise some extra revenue?

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Nothing unique here, it’s happening in every business in the economy - small/medium/large - we are currently going through the “mother of all recessions” - job cuts, redundancies, changes to business models and disruption is inevitable, and not unique to Monzo.

8% cut in staffing costs vs what could be up to 20-30% cut in GDP this year, shows they’re not going to be one of the worst affected businesses - just look at the airlines, they’re making up to 30% of their staff redundant.

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Premium accounts I think will be a good source of income in the future along with business accounts , and the metal card looks pretty damn good , and Im not really interested in a metal card , but it did / does feel quality :slight_smile: the premium account was due to launch I think on 27th March according to my source after speaking on March 2nd , all this was totally predictable with hindsight :slight_smile:

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I agree with your points here. I haven’t personally seen or touched their metal cards, but on material alone, they will be much higher quality than the plastic cards they make currently, which I’ve not been too fond of. My first Monzo Bank Card was great quality. But then I bought Monzo plus and the card was dreadful. Replacement coral cards were quite bad compared to my original one too.

Will there be a coral metal card? Coral is a big part of their brand and a metal coral would look stunning and would be a lust for me.

I presume if coronavirus did prevent them launching it, it means travel insurance will be bundled in. That’s a shame, because it means I won’t be eligible for it until I plan to travel abroad anywhere. I was really looking forward to the version focused on budgeting.

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What? Banks don’t care about their staff, they care about profits. If Natwest need to cut 1000 jobs, they will do it. They won’t keep losing money because Dorothy won’t be able to pay her mortgage.

Bringing up ethics is just weird.

It’s in the article.

They are losing 8% of staff with the redundancies

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This statistic is only for those 120 people. It doesn’t take into account Vegas or furloughed staff. They were asking, when you combine all three staff cuts, how many employees does that leave them with. In the form of a number, not a percentage.

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So far. They understand the pandemic and what this means for their business.

It’s unfortunate for anyone that loses their job during this, no matter where they work, but there will be thousands more across all sectors.

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Furloughed staff have not been cut, they are still employed by Monzo. The redundancies are across all current staff, furloughed and non-furloughed (i.e. some furloughed staff are at risk of redundancy, some not, same with non-furloughed staff).

Are people reading previous posts, or just posting vague assumptions?

Or is the basic maths a problem? 1,500 - 120 = 1,380

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Yes, but furloughed staff are not currently working.

Does that 1500 figure account for the Vegas cuttings, or was that calculated before? I ask, because that figure appears to be from last year, before Vegas was shut down.

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Many banks also charge you £25 for a missed direct debit. I wonder how come they are able to pay those staff? :thinking:

That’s an exaggeration, be fair. It’s up to £25. I only know of one bank that actually charges that much. There are no such fees with basic accounts, which is all Monzo essentially is unless you ask them for credit facilities.

You can keep including the furloughed staff because it suits your narrative, but they are not part of a ‘downsize’

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Yes, of course. Any defence of Monzo or pointing out the flaws in an argument is OMG FANBOYZ.

Seriously.

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You’re right that they’re not part of a downsize. At least not yet, we’ll have to see what happens with those employees later. I very much hope that they won’t be cut.

In any case, it’s not that furlough staff being counted fits their narrative, it’s that the point they were making was more to do with how many people are currently working at Monzo. Furloughed staff may still be employees, but they’re not working for Monzo at the moment.

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I think this might be a reality check to some Monzo staff (and to customers who think Monzo can do no wrong). They are not your friend, they do not put ethics above profit, but they are a (currently) loss making corporate entity albeit with a good marketing team.

They might well use the current situation (either by choice or by necessity) to cut staff which will help towards profitability, and there is nothing wrong with that - it should be encouraged. It doesn’t make it less upsetting for those who are going to lose their job of course. But that is the reality. Monzo is not one of your mates.

Sadly I can’t see the community lasting unless it gets run by volunteers.

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So, what you’re saying is that people believe Monzo can do no wrong, and this will change that outlook, but they are not doing anything wrong here? So why would this be a reality check again? I don’t get the logic. Or is this just you having a go for the sake of having a go?

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Huh? Not sure it is ‘having a go’ when it was a post supporting Monzo.

Sounds like you are :smile:

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