In the last weeks, several leading global startups have announced massive job cutsyes The economic crisis unleashed by the covid-19 pandemic and, more recently, Russia’s invasion of Ukraine, have shaken the financial markets, putting a brake on the availability of capital and new investment.
After receiving a record US$ 15,000 million dand venture capital investments in 2021, the Latin American startups see investors pull back. This context makes many of them rethink their business strategy and resort to cost-cutting measures such as downsizing.
As the Statista graph shows, the Brazilian technology companies have been especially affected by this wave of layoffs, whose start can be identified at the end of April 2022.
easily, a ecommerce marketplace through social networks, laid off more than 260 people, while nearly 200 employees were dismissed from VTEXa software company electronic commerce which began trading on the stock market in July 2021. In addition, QuintoAndar and Loft announced around 160 layoffs each, as did Olist, Zak and Liv Up, with 100 disaffected workers each.
LPeruvian company Favo also announced the dismissal of its 170 employees in Brazil, as well as its indefinite withdrawal from this market. In the field of cryptocurrenciesthe Mexican platform Bitso and the Argentine Buenbit eliminated at least 80 jobs each.
