UK fintech consultancy 11:FS cuts 12% of workforce
11:FS, the UK-based financial services consultancy firm, is cutting 12% of its workforce as part of its latest efforts to curb the negative effects of the coronavirus on its business.
Out of its roughly 183 employees, 22 will be leaving the company. Those “indirectly supporting revenue-generating efforts are at risk”, whilst client-facing and product delivery teams “which sit at the core” of the firm according to CEO David Brear, are safe.
Emails were sent out to all members of staff regarding their job security yesterday to initiate the pooling process. “We are going through the consultation process this week with an aim of finalising the way forwards within a week,” Brear said in a blog post. “The majority of those who are impacted will be told much sooner than this.”
Those departing the firm will get a severance payment, which will be topped up by up to £5,000 for those who have been at the firm for a month or less, or on probation.
Laid off employees will also get to keep their MacBooks, and the firm has set up an opt-in ‘Alumni Talent Directory’ to help advertise soon-to-be former employees for future job opportunities.
Brear said the company invested heavily in growth for 2020, but that the level of growth it invested in “will not be possible given the impact of COVID-19”.
He also revealed that 11:FS’s clients and potential clients has been “taking a more cautious approach to spend” due to uncertain market.
At the beginning of May, AltFi revealed that 11:FS temporarily cut the salary of all those earning £30,000 or more by 15%, and by 20% for contractors. The company also put 26 of its employees onto the Coronavirus Job Retention Scheme – roughly 15% of its total workforce.
Last month, Brear and deputy CEO Jason Bates announced they were giving up 75% of their salaries. They have now confirmed this salary sacrifice will continue through to the end of the year.
“We are a small business – no big VC [venture capital] cheque to fall back on,” Brear said yesterday. “We spend what we make and our costs need to be in line with our revenues.”
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