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Contxto – In the world of businesses/startups the equivalent of “we need to talk” is “we’re going through some restructuring.” That often means an employer-employee breakup is imminent, as staff at one of NotCo’s production plants recently learned.
On March 31, the foodtech determined that it would be closing its NotMayo production plant in the Quilín area, of Santiago, Chile. As a result, 32 people were laid off and 20 others were relocated. In addition, the production of NotMayo would pass onto an unnamed third party.
- Related article: Brazilian foodtech Fazenda Futuro expands to Europe
These changes are part of the startup’s ongoing restructuring. The fact that these measures had already been considered prior to the coronavirus (Covid-19) outbreak is noteworthy. The pandemic had only delayed its execution.
I know a heart (or two) at Contxto is breaking to read this, but there is a ray of hope (or so I hope).
Do what you do you best, says NotCo
While leadership at the foodtech stated to be saddened by the decision, it’s a strategic move because it now knows what it does best and it’s shifting its focus.
“Because we have more resources and focus on what we know how to do best, products have been pre-released into the market and we’ve progressed in new developments.”
So perhaps NotMayo isn’t the hard hitter the startup had initially intended for it to be. But the foodtech now better understands the market’s needs and is refocusing on those instead.
- Related article: NotCo and Papa John’s partner to offer vegan pizzas
My guess is it’ll further concentrate on its NotMeat product which has been filtered into the market by partnering with food chains like Papa John’s and more recently, Burger King.
Tough days are ahead for some of Latam’s startups.
Even though Covid-19 didn’t directly influence the decision to shut down the plant, it does complicate everything.
“This is likely the most profound crisis we’ve ever faced as a generation,” said Silva.
“And we all have to make tough decisions. Given this world and context, NotCo isn’t the exception.”
I swear I’m an optimist, but my job is to be real with you, reader. In the coming days more “we need to talk-type” news is coming.
The point is to be prepared for it.
Related articles: Tech and startups from Chile!