THE loggi today (8) dismissed around 15% of its workforce of 3,000 people – approximately 500 employees. According to the startups, the layoffs affected several areas of the company, including technology, design and recruitment. In Lisbon, where Loggi has a technology hub, around 40% of the team was cut (35 people).
“We weren’t exactly taken by surprise, but we didn’t imagine that the tech area would be affected as well,” said a former employee of the loggi heard by startups. Another fired employee confirms that the team anticipated the cuts. “A consultancy had been working for a few months in the loggi to review the budget. Being a logistics startup, we know that there was a very big boom in the pandemic and now revenue has decreased,” he says.
The reason for the cuts would have been cost reduction, given the current market situation. The terminated employees will receive a three-month health plan allowance, in addition to consulting for their replacement in the market. In addition, there were other changes: in an email sent to employees today, the company changed its CEO, with the founders joining the company’s board.
O startups found that the company had tried to reassure employees a few weeks ago and ruled out the possibility of cuts. The terminations were made at all levels of the company, including people on the board and in leadership positions, who are expected to remain with the company until the end of August.
wanted, the loggi said that the reduction of its headcount “is part of a set of actions to increase operational efficiency taken in the last 6 months to adapt the company to the new global scenario and guarantee the sustainability of the business”.
“The company is grateful for the dedication of people who are currently dismissed and reinforces the availability of a benefits package that includes cost assistance for contracting a health plan for holders and dependents, psychological assistance and support in the professional replacement process.
THE loggi reiterates its purpose of transforming businesses by connecting Brazil with a simple and innovative delivery experience,” the company said in a statement.
On the IPO route
A person heard by startups said that talks about the IPO of loggi been going on for at least 2 years. The hiring of the then CFO, Thibaud Lecuyer, would have been motivated to structure the internal processes with the expectation of going public on the stock exchange soon. Today (8), the startups found that Thibaud is assuming the presidency of logtech. Founder Fabién Mendez is stepping down as CEO to take a seat on the company’s board of directors.
In February 2021, the startup raised BRL 1.15 billion led by the manager CapSur Capital. The round also attracted the Green Assetmanager of Luis Stuhlberger who traditionally invests in publicly traded companies (the loggi was the 1st in a private company).
THE loggi is also invested by SoftBank. In recent months, other startups in the portfolio of SoftBank also streamlined operations. In May, the VTEX cut more than 10% of the frame. Healthtech Alice, which in December closed a series C of US$ 127 million, terminated 63 employees 7 months after the contribution. loft and Fifth floor were other giants affected by the wave of layoffs.
Today (8), SoftBank reported one of the worst results in its history with losses of 2.93 trillion yen ($21.6 billion) in its first fiscal quarter. Masayoshi Son, founder and CEO of SoftBank, said during the presentation of the results that the megafund must make a “dramatic reduction” in its staff to generate more efficiencies, in several business units.