Zurich-based fintech Numbrs has to cut its workforce despite an apparently successful launch in Germany and prominent backing from investors.
Numbrs Personal Finance, which was founded in 2014 in Zurich, is in trouble. The company, that is primarily plying its trade with a finance application in Germany, has launched a rigorous restructuring program, according to a statement released on Thursday night.
Numbrs had to apply the brakes after it failed to receive new cash from a capital raise, despite legally binding undertakings, it said. The cuts will affect as many as 62 members of its Zurich-based staff – which would be almost half of the total workforce. Numbrs once was hailed as Switzerland’s first unicorn.
Working From Home
The staff was informed about the restructuring plans on Thursday and will have the right to make their own suggestions about how to best implement the changes, according to Swiss labor laws. The executive team is committed to a responsible implementation of any cuts and will attempt to avoid hardship cases.
Two weeks ago, the company launched what it says is a completely virtual organization, with the entire staff working from home. Numbrs also remains committed to launching its business in the U.K. in the summer of 2020.
Prominent Investors
The announcement comes as a surprise given the number of prominent backers who invested money in the firm. Sir Ronald Cohen, Josef Ackermann and Pierre Mirabaud were among the early investors.
Later, the Austrian founder of the firm, Martin Saidler, attracted the attention of Dubai Investment Corporation and Israel billionaire and co-founder of Check Point, Marius Nacht, also recently committed himself to the business.
Europe's Most Valuable
With its app, the company has what it believes is one of the world’s most advanced finance tools. It has investment capital worth 200 million euros and is valued at more than 1 billion euros, making it one of Europe’s most valuable fintechs.
The Numbrs app has as an aggregate of 11 billion euros in client assets, 2.2 million downloads and 1.8 million bank accounts that are linked to the app, making it the best used independent financial app in Germany.
