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Brazil's Ebanx lays off 20% of employees as cuts sweep tech sector

Brazil's Ebanx lays off 20% of employees as cuts sweep tech sector
Brazil's Ebanx lays off 20% of employees as cuts sweep tech sector Copyright Thomson Reuters 2022
Copyright Thomson Reuters 2022
By Reuters
Published on Updated
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SAO PAULO - Brazilian payments fintech Ebanx said on Tuesday it had laid off about 20% of its staff, joining billion-dollar tech companies across the country bracing for a gloomy economic landscape.

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

Facily, Brazil's e-commerce darling, 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 previously had over 1,700 employees, said in a statement that it is reviewing its operations and focusing down on its main 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 fundraise until later this year due to the current mood of investors.

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