SAO PAULO (Reuters) – Brazilian funds fintech Ebanx mentioned on Tuesday it had laid off about 20% of its employees, becoming a member of billion-dollar tech corporations throughout the nation bracing for a depressing financial panorama.
Ebanx’s dismissal of 340 staff is the newest in a wave of huge Brazilian startups who’ve introduced they’re slimming down amid excessive inflation, shrinking capital swimming pools, and rising rates of interest.
Facily, Brazil’s e-commerce darling, additionally just lately reduce round 30% of its workforce, whereas native cryptocurrency alternate Mercado Bitcoin and funding platform Empiricus have additionally introduced layoffs.
In the meantime, Mexican SoftBank-backed tech unicorn Kavak laid off 150 staff in Brazil’s operation earlier this month. [L1N2XW1DF]
Ebanx, which boasts a $1 billion valuation and beforehand had over 1,700 staff, mentioned in a press release that it’s reviewing its operations and focusing down on its fundamental enterprise, worldwide funds.
The corporate, which processes funds in 15 Latin American nations, has restructured and discontinued some initiatives, with out giving additional particulars.
“The choice was made primarily based on the present state of affairs of the know-how market as an entire, impacted in a profound and quick manner by the macroeconomic atmosphere,” it mentioned.
In March, Ebanx’s CEO and founder Joao Del Valle introduced he had postponed a recent fundraise till later this yr because of the present temper of traders.
(Reporting by André Romani; Writing by Carolina Pulice; Enhancing by Nick Zieminski)
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