N26 to cut headcount

N26 to cut headcount

Digital bank N26 is to cut four percent of its headcount, impacting 71 jobs, as it adjusts to challenging maro-economic business climate.

The firm says the headcount reduction comes against the backdrop of "significant and long-lasting changes" to the global business landscape in the last year.

Intended to sharpen its focus on its most important strategic priorities, the job cuts come just a month after German insurance giant Allianz moved to sell its five per cent stake in the bank at a sharp discount.

The insurer's venture capital arm has called in an adviser to hawk its stake at a $3 billion valuation, down from N26's $9 billion price tag at its latest funding round in October 2021.

That October round saw N26 raise $900 million ahead of a planned IPO which was quickly shelved amid plummeting tech valuations.

Launched in Germany and Austria in January 2015, N26 began as a current account with a Mastercard. It has since moved into areas such as crypto and stock trading, attracting more than seven million customers in two dozen countries.

Despite its heady valuation and strong customer numbers, the company has faced some stiff headwinds over the last couple of years and in October reported a net loss for the year of €172.4 million, 14.45% up on the previous year.

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