20% of Brazil’s Ebanx Lays Off as Employees as Cuts Sweep Tech Sector | Technology News

SAO PAULO (Reuters) – Brazilian payments fintech Ebanx said on Tuesday it had laid off about 20% of its staff, joining billion-dollar tech companies bracing the country for a gloomy economic landscape.

Ebanx’s dismissal of 340 employees is the latest in a wave of large Brazilian startups that have announced they are slimming down amid high inflation, shrinking capital pools, and rising interest rates.

Facily, darling Brazil’s e-commerce, also recently cut around 30% of its workforce, while local cryptocurrency exchange Mercado Bitcoin and investment platform Empiricus have also announced layoffs.

Meanwhile, Mexican SoftBank-backed tech unicorn Kavak laid off 150 employees in Brazil’s operation earlier this month. [L1N2XW1DF]

Ebanx, which boasts a $ 1 billion valuation and has had over 1,700 employees, said in a statement that it is reviewing its operations and focusing on its core business, international payments.

The company, which processes payments in 15 Latin American countries, has restructured and discontinued some projects, without giving further details.

“The decision was made based on the current scenario of the technology market as a whole, impacted in a profound and fast way by the macroeconomic environment,” it said.

In March, Ebanx’s CEO and founder Joao Del Valle announced he had postponed a fresh fundraiser until later this year due to the current mood of investors.

(Reporting by André Romani; Writing by Carolina Pulice; Editing by Nick Zieminski)

Copyright 2022 Thomson ReutersGeneral Chat Chat Lounge

General Chat Chat Lounge

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker