Ebanx: the Brazilian fintech announces the layoff of 20% of its employees

Ebanx: the Brazilian fintech announces the layoff of 20% of its employees

Find out the reasons for the decision to lay off several employees.

Image: Reproduction / Ebanx

Estimated reading time: 3 minutes

Reviewing company operations, Ebanx announced the layoff of 20% of employees. The Brazilian payment solutions fintech, which had 1,700 employees, laid off 340 workers.

The closures are part of a restructuring plan, with some internal projects being scrapped. Fintech points out that the decision was made based on the current scenario of the technology market, which is deeply and rapidly impacted by the macroeconomic environment.

Recently, other companies have also reacted to the current macroeconomic scenario, with spending cuts and layoffs of employees at cryptocurrency exchanges. Unlike those companies, Nubank sees no need for any kind of layoffs, according to fintech CEO David Vélez.

Ebanx employees will receive a special benefits package

According to Ebanx, terminated employees will receive a special benefits package. The company explained that employees will earn termination values, additional amounts, health plan expansion and the work computer.

Based in Curitiba (PR), Ebanx is considered a “unicorn” for being a $1 billion startup. It should be remembered that the company was the first brand in the southern region of Brazil to obtain this nomenclature and has already received investments of 400 million US dollars from Advent International.

Startups have reduced their workforce due to market uncertainties

Recently, at least 10 startups have downsized. Many of these companies have even grown a lot in recent months, especially at the height of the Covid-19 pandemic when investors made large sums available.

Quinto Andar, Facily, Loft, Mercado Bitcoin and other companies announced layoffs of hundreds of employees from various sectors. Among the justifications for the layoffs, the companies point to the drop in international investments, due to high inflation in the world.

Faced with the recent layoffs, the employees of the other institutions are worried, because the period of uncertainty on the financial market has had impacts all over the world.

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Image: Reproduction / Ebanx

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