Revolut Cuts 60 Jobs as Pandemic Pressures Challenge Profit Goals
UK digital bank Revolut lays off 60 employees as COVID-19 forces cost-saving measures. The $5.5 billion company still aims to achieve profitability this year despite the economic downturn.
UK-based digital bank Revolut lays off approximately 60 employees as the COVID-19 pandemic forces the company to implement strict cost-saving measures. CEO Nikolay Storonsky announces the redundancies, affecting a small fraction of the firm's 2,200-person global workforce, after previous efforts like salary sacrifices fail to protect all jobs.
Prior to the layoffs, Revolut management attempts to preserve cash reserves by offering employees a "salary swap" scheme that exchanges monthly pay for company shares. Co-founders Storonsky and Vladyslav Yatsenko give up their own salaries entirely for 2020, and the CEO promises personal letters of recommendation to help displaced workers secure new employment.
These job cuts come as Revolut faces intense pressure to meet ambitious performance targets and record a profit this year despite the global economic crisis. The $5.5 billion fintech firm, which recently expanded its banking services into Lithuania and secured $500 million in funding earlier in the year, reportedly eyes potential acquisitions of rival businesses struggling during the pandemic.