The Brazilian payments company Stone announced on Tuesday (12) the dismissal of 20% of its staff, 1,300 people. Employees learned that the cuts would take place on an internal video conference this morning with President Tiago Piau. Then, each one was individually informed about the decision.
In a statement to investors, the company reported all the measures taken to date against the impacts, including a special credit line of BRL 100 million for small business owners, but admitted that they were not enough to avoid reductions in the staff.
“Although merchants have been doing the impossible to adapt themselves to social distancing and the online channel, the reduction in their sales has been inevitable. There was a demand shock in Brazilian retail that has never before been seen. Now that we can see more clearly the magnitude of the impact, we need to allocate resources even more prudently, resizing our operation in order to maintain our ability to contribute with the Brazilian entrepreneurial ecosystem. It is time to take austerity measures,” stated the company.
“We have taken the tough decision to reduce our team by 20%, and 1,300 people are leaving the company today. This was an extremely hard decision, and we did not make it lightly. At the beginning of the crisis, we did not contemplate having to take this route. Having exhaustively considered all alternatives, we have concluded that it is a necessary step to maintain our purpose towards our clients and support them in such difficult times,” added the company.
Among its initiatives, Stone mentioned the launch of the campaign (https://cuidedopequenonegocio.com.br/), making available tools to enable clients to sell online and better manage their digital and social sales channels; the BRL 30 million relief to its clients, including subscription exemptions and lower prepayment rates for the hardest-hit sectors; the BRL 100 million amount in microlending to meet its clients’ liquidity needs; the contribution of BRL 5 million to the construction of a temporary hospital in Rio de Janeiro; and the donation of BRL 500,000 for the purchase of 10,000 COVID-19 tests.