Contxto – Unicorn Loggi just isn’t catching a break these days. The last-mile delivery startup lost a lawsuit last December for which it’s facing US$7.2 million in fines.
Now, more recently, it’s had to fire around 120 employees due to company restructuring, half of which are in São Paulo primarily in its marketing and sales departments. In its other Brazilian offices, the startup laid off personnel in lower-level positions.
When layoffs like these occur it’s usually so a company can cut costs, as is Loggi’s case.
Related article: Loggi must formalize work relations with couriers, and pay over US$7.2 million in fines
Loggi’s shifting priorities
The unicorn’s recent shortcoming is a familiar story we’ve already heard in 2020.
In early January, it was revealed that Colombian Rappi was also dismissing staff in its search for profitability.
So Loggi makes for the second of SoftBank’s portfolio companies in Latin America to let employees go.
Anonymous sources originally reported these happenings to Estadão, and they assured the paper that it was all very abrupt. In some cases, Loggi told these employees that because goals weren’t being met, these layoffs were needed.
Moreover, they also stated that the unicorn had shifted its business plan for 2020.
And on that note (interestingly enough), the logitech is still hiring for its tech development areas, including its office in Lisbon. And it’s reported that the startup will further invest in automation within its internal system.
I’m one to think that the startup’s priorities might be mirrored in these shifts in its staff. The startup will continue pushing for tech development and cut down on everything else.
Related article: Colombia’s Rappi to lay off ~300 employees, in rude awakening to new 2020 reality
Who has the right of it?
In broad terms, it’s hard to know who to believe.
A disgruntled employee who may or may not be telling the truth as to the motives for being fired? Or, a startup that’s being increasingly pressured by its investors to meet profitability?
I’d say both hold a grain of the truth, but for the sake of maintaining a positive image, neither will be straightforward about it.
Related articles: Tech and startups from Brazil!
-ML
