Today is a difficult and emotional day for all of us at Varo, as we’ve had to say goodbye to 75 Varo team members whose roles have been eliminated.
This was an extremely tough decision.
As a business, we are not immune to the impacts of our current environment and we must make some difficult decisions to ensure that Varo has sufficient capital to execute on our strategy and path to profitability. This is in addition to steps we’ve taken to decrease our burn rate, including limiting hiring to the most critical roles and pulling back on marketing investments in the near-term.
Those whose roles were impacted are receiving severance pay, extended benefits, and additional resources to help through the transition. They also have all of our utmost respect and appreciation for all that they’ve done to help make Varo the leader in digital banking.
I’m sure many of you are wondering, what happens now?
Since Varo Bank was founded in 2015, we have been focused on making financial inclusion a reality for all. We’ve built our business from the ground up with the goal of creating a bank that works for everyone striving to build a better future – from those with abundance to people struggling to make ends meet and expect more from the team looking after their money. With inflation on the rise and market volatility increasing, I believe that our mission is more important than ever.
As part of this transition, we will be establishing a new business unit, Varo Tech, which will bring together the Technology, Design, Data and Product functions under a single umbrella. This new structure will allow us to increase pace, reduce costs, and, as always, ensure our focus remains on technology innovation and continuing to engage and grow our customer base. It also enables us to reduce silos across the company and drive more cross-functional collaboration.
Throughout this transition period, I want each of you to feel supported and comfortable raising your hand, sharing your feedback, and seeking additional clarity on these changes. The leadership team and I are committed to listening and having candid conversations. I am grateful for the passion and rigor you bring to our business every day and am confident in our ability to emerge stronger than before.