- The startup says it will maintain investments and future hirings for tech positions, and layoffs were necessary to keep efficiency and focus on its core operation;
- Loggi’s restructuring is the latest in a series of turbulences felt by startups that received investment from Softbank or its Vision Fund.
Brazilian logistics unicorn Loggi fired about 120 people last week as part of an internal restructuring process. According to the newspaper O Estado de S.Paulo, most of the layoffs occurred in the sales and marketing teams, and half of them happened in regional offices.
Founded in 2013 by Fabien Mendez, Loggi is one of the Brazilian startups whose valuation surpasses $1 billion. Operating in food, e-commerce and documents delivery, the company was recognized as a unicorn in June 2019, when it received $150 million from the Japanese group SoftBank.
In an official statement to LABS, the company pointed out that it will keep its investment commitments “in line with its expansion and product development plans”. Loggi also added that it will continue to hire staff, mainly in technology positions, including for its new office in Portugal.
“Loggi maintains its objective of connecting Brazil and with that goal it prioritizes financial balance and good practices aiming a healthy growth. The company’s restructuring was necessary to keep efficiency and focus on its areas of operation”, reads the statement.
Loggi is another case of a startup that received investment from SoftBank or its Vision Fund announcing restructuring or facing turbulence. The most famous case is WeWork’s failed attempt at going public and Uber’s declining stock prices, which have caused concern amongst investors in SoftBank.
SoftBank spent roughly $10 billion rescuing WeWork last fall and Uber’s share price lost roughly 8% of its value since its public debut in May – despite a recovery during the last weeks. The Vision Fund, created in 2017 to infuse capital on technology startups, reported an operating loss of $2 billion.
The list also includes Colombian startup like Rappi, which cut 6% of its employees worldwide in early January, and Indian Oyo, specializing in hospitality services, which has cut 3,000 jobs in India and China in the past three months.
Loggi was also recently fined in BRL 30 million (US $ 7 million) after a court decision established that its couriers are employees. The ruling is still pending appeal to a higher court.