German neobank Nuri becomes latest firm to announce layoffs
Berlin-based neobank Nuri is the latest in a string of start-ups to announce layoffs following the recent market turbulence.
The firm laid off 45 of its employees last month, citing various macro-economic reasons for its decision.
In a letter on the company website, CEO Kristina Walcker-Mayer referred to “massive” corrections in tech and fintech valuations, the interest rate turnaround in the US and rapidly rising inflation as reasons for the market volatility.
“Venture capitalists have become more cautious,” she says. “To get funding now and in the near future, companies have to show that they are on the home stretch to profitability – and this is also true for us.”
Explaining that the firm’s strategy so far has been to target high user growth and activity, Walcker-Mayer says recent market developments mean this strategy is “not in line anymore with the massively changing market expectations”.
She says: “During the past weeks, we had to make some significant, but also often quite uncomfortable decisions. The saddest decision is the reduction of our workforce and therefore parting with some of our team members.
“Everyone affected will be involved in a fair process, can count on the highest levels of support, from job finding support through our network to mental support via coaching, and further measures to ensure a smooth transition.”
The news follows a string of layoffs in the fintech space in recent weeks.
Buy now, pay later (BNPL) giant Klarna recently announced it is to let go of approximately 10% of its global workforce, while US fintech Main Street has laid off around 30% of its staff.