Numbrs initiates extensive restructuring
- Measures include a reduction of the cost base by more than 50% and the strengthening of the revenue stream through new product partnerships.
- Numbrs will continue to offer and support the full scope of the app in the German market, including the new functionalities added this year, such as the aggregation of cryptocurrency wallets.
- Numbrs will stick to its plan to release the app in the UK for summer 2020.
Zurich, 07th May 2020 - Numbrs Personal Finance AG ("Numbrs"), provider of the leading multibanking app in the German market, is initiating a comprehensive restructuring program. The reason for this is that a new financing round in the high double-digit million range has not been completed despite a legally binding signature.
In order to ensure the continued operation of the company in an environment that will be marked by significant uncertainties in the field of start-up financing for the foreseeable future, caused by the COVID-19 pandemic, Numbrs today also began implementing a comprehensive program to reduce costs and to exploit untapped revenue potential. The program aims to reduce fixed costs by more than 50 percent and strengthen the revenue base by consistently leveraging previously unrealised potential.
The Numbrs App will continue to be available and maintained in its full functional scope in the German market. This includes new functionalities such as the possibility of aggregating cryptocurrency accounts in Bitcoin, Ethereum, and Litecoin via the app. We will also continue to rapidly address and resolve the technical problems that still occasionally arise in connection with the introduction of the new interfaces from banks to third-party providers as a result of the second EU payment transaction directive (PSD2). Besides, Numbrs is sticking to its market entry in the UK, which is still planned for summer 2020.
The intended reorganization might lead to a reduction of up to 62 employees at the company headquarters in Zurich - this would correspond to almost 50 percent of the company's total workforce. Numbrs employees were informed of the restructuring plans by management today. As part of a four-week consultation phase required by Swiss labor law, employees now have the opportunity to make their suggestions on how the organizational restructuring can be handled in the best possible way. It is the declared aim of the management to find a socially acceptable solution for all those affected and to avoid cases of hardship.
Furthermore, Numbrs already initiated the complete virtualisation of the organization two week ago. This means that the entire Numbrs staff will continue to work in home office.
"We very much regret that we have to initiate the restructuring program due to the current developments and will do our utmost to make this process as socially responsible as possible", explained Fynn Kreuz, Managing Partner of Numbrs Personal Finance AG. "On behalf of the management, I would also like to thank all Numbrs employees for their understanding that we, like many other start-ups, must now prepare ourselves for a long lean period. In addition to user growth, which has been our absolute priority so far, the focus is now on realizing further revenue potential in our user community and optimising our cost structures.
Numbrs remains one of the most-used multibanking apps in Germany. Despite the current challenging phase, the company is confident about the future and remains committed to its vision of making Numbrs the world's leading multibanking app. the company's strategic plan for the current fiscal year remains unchanged.