Panel SA: Startup network sees layoffs concentrated in giants

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The dismissal movement observed in large Brazilian startups does not affect small ones, according to the president of Abstartups (Brazilian Association of Startups), Felipe Matos.

He says he sees cuts restricted to so-called unicorns, startups valued at $1 billion or more. Among the companies that have made recent cuts, QuintoAndar, Loft and Facily, laid off more than 400 people in a few days.

According to Matos, the small companies are hiring. “I don’t see a general drop in technology companies. On the contrary, we have more vacancies than qualified professionals”, he says.

For him, the sector is experiencing a moment of correction after a phase of euphoria in the pandemic, which led to an increase in demand for digital.

“We had a record of investment in Brazil and Latin America, which was a little explored market”, he says.

With the increase in interest rates, low-risk investments began to pay off and, as a result, reduced contributions to companies. The Ukrainian War contributed to the revision of plans.

“Investors are more cautious and the company leaves the paradigm of growing as quickly as possible”, says Matos.

Joana Cunha with Paulo Ricardo Martins and Gilmara Santos

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