Rival fintechs Revolut and Wise are still recruiting
Nikolay Storonsky founder, CEO and co-founder of Revolut.
Harry Murphy | Sportsfile for Web Summit via Getty Images
Some fintech unicorns may not be able to create new jobs.
Klarna had announced that she would be launching a campaign to lay off 10% of its workforceOn Monday, rival fintechs made it clear they are not planning to reduce jobs or stop hiring.
Revolut, a $33B digital banking startup, stated that it is actively recruiting with 250 available roles on its website.
Meanwhile, WiseKristo Kaarmann CEO stated that the London-based money transfer business is “different” from tech firms which let staff leave.
“Years of building Wise as a profitable long-term company is paying off now,” Kaarmann tweeted Wednesday.
“So many people are looking for international banking services, it’s hard to find the right staff fast enough to create them.”
N26, the German digital bank in Germany said today that they have “no plans” to decrease headcount. It was valued last year at $9 billion.
An N26 spokesperson stated, “We will continue to make strategic investment to grow our staff with a focus product, technology and financial crime prevention.”
Klarna’s experience is quite different. The buy now, pay later firm — which lets shoppers split their purchases into equal, monthly installments — said it plans to cut an estimated 700 roles due to a souring economic climate.
Klarna CEO Sebastian Siemiatkowski stated to employees in a recorded video Monday, “When we established our business plans 2022 in fall of last year it was very different from the one that we are currently in.”
“Since then we have witnessed a tragic, unnecessary war in Ukraine, shifts in consumer sentiment and an increase in inflation. The stock market is volatile and there’s a possibility of a recession.”
Robinhood, Better.com and other financial technology firms have taken similar measures. cut jobs and rein in costsThis year.
The Covid epidemic gave digital finance a boost as more people used online platforms to pay bills, get loans or trade shares. The sector’s future has been rocky in 2022 due to rising interest rates, inflation and the conflict in Ukraine. Investors have begun to doubt the high valuations of the space.
Wise is an example of this. It has almost lost two-thirds its market value ever since July 2021’s listing.
Rishi Khosla, CEO of U.K. online lender OakNorth, said there have been “massive bubbles” in fintech — from buy now, pay later to crypto. He stated that BNPL was allowed to thrive largely because of “regulatory arbitration.”
He stated, “Ultimately the regulation will catch up to them and this is why the opportunity isn’t going to continue.”
Klarna is reportedlyFunds are being sought at 34% off the previous investment round which valued company at $46billion. Klarna representatives dismissed speculation.
A spokesperson for Revolut said that it does not intend to follow the example of other companies.