165 jobs go as Monzo shuts Las Vegas customer support office

165 jobs go as Monzo shuts Las Vegas customer support office

As Covid-19 continues to hit businesses around the world, UK challenger bank Monzo is shutting its customer support office in Las Vegas, with the loss of 165 jobs.

The news, first reported by TechCrunch, comes days after Monzo confirmed that it is looking to furlough up to 295 UK employees as it bids to weather the Covid-19 storm.

Although the pandemic has brought the Vegas office's closure forward, it is understood that the move had been on the cards since late last year.

The site offers overnight customer support to Monzo's UK customers, but this time period accounts for just 12% of all queries. The slack will be picked up by the bank's almost 900 support staff in the UK.

Monzo, which claims around four million customers and closed a £113 million funding round last summer, is well capitalised and is still planning to launch in the US. However, it is taking precautions to ensure it is ready for the economic situation to worsen.

Meanwhile, it is understood that the Vegas staff will receive two months notice during which they will get full pay as well as additional healthcare cover.

Comments: (1)

A Finextra member
A Finextra member 16 April, 2020, 13:12Be the first to give this comment the thumbs up 0 likes

So we have a brand new, VC-leveraged "challenger bank" furloughing and laying people who engage with the customers - that's really how they going to compete with traditional banks that understand clienteling and community responsibility is the bread and butter to keep a bank successful? Ok. 

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