N26 slashes workforce by 15%

Digital bank N26 has made significant staff cuts in Brazil, reportedly laying off 15% of its Brazilian workforce, affecting approximately 20 employees. This comes after the challenger bank announced plans in May to cut 71 jobs, around 4% of its global workforce, to focus on key strategic priorities amid the ongoing changes in the global business landscape.

N26’s entry into the Brazilian market began in 2019 with the appointment of Eduardo Del Guerra Prota as the general manager to lead the operations. However, the bank’s progress in Brazil has been slower than expected. Despite gaining approval from the country’s central bank to operate as a direct credit company in São Paulo in 2021, N26 has accumulated only around 200,000 customers in two years. This is a small fraction compared to the 8 million customers the bank claimed to have worldwide at the end of 2022.

In response to the situation in Brazil, an N26 spokesperson stated that the team in Brazil is exploring multiple routes to strengthen its position in the market, including the possibility of working with a local partner. The spokesperson emphasized that there is still a strong response to the N26 experience in Brazil and the team remains committed to supporting customers and transforming their relationship with money.

Meanwhile, in its home market of Germany, the German financial regulator BaFin has reportedly extended restrictions on N26 to combat money laundering. The watchdog will continue to impose a special monitor on N26 and restrict its new customer count to 50,000 accounts per month, as it did in 2021.

Additionally, the bank’s Chief Growth Officer (CGO), Alexander Weber, is stepping down from the position after serving in the role for nine years. These recent developments indicate a period of changes and adjustments for N26 as it navigates its growth strategies in various markets.