Loggi fires around 15% of employees and changes president

The parcel delivery company Loggi laid off about 15% of its employees on Monday (8) and announced a change in command, with the current chief financial officer, Thibaud Lecuyer, taking over the presidency of the company.

Loggi joins a number of startups with operations in Brazil that have made layoffs in recent months, including QuintoAndar and Ebanx, among others.

The company said in a statement that “the reduction of its headcount is part of a set of actions to increase operational efficiency taken in the last six months to adapt the company to the new global scenario and ensure the sustainability of the business”.

Lecuyer will replace Fabien Mendez, one of Loggi’s co-founders. Mendez will assume the presidency of the board.

In recent years, startups have benefited from large inflows of investments, especially because of the reduction in interest rates, adopted by central banks around the world to keep economic activity heated during the pandemic, and the forced digitization of the population, which bankrolled itself and boosted from distance classes to internet purchases — segments in which many startups operate.

Now, the factors have reversed. The return of face-to-face activities casts doubt on the future performance of technology companies. It is not known whether online habits that people adopted in the pandemic, such as the use of ecommerce, will be maintained.

Interest rates, on the other hand, have been adjusted in an attempt to curb global inflation, which shows no signs of letting up. High fees make less risky applications more profitable than startups — fast-growing companies that, in many cases, burn cash to expand and outperform competitors.

The result is a shortage of money for investments, pressure from investors for profit and, on the other hand, business opportunities for companies that want to acquire startups at lower prices.