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PagSeguro dismissed about 7% of its staff, totaling more than 500 people. In the employees' Whatsapp groups and in the company's corridors, it is said that the total would be much higher.
All the dismissals took place just two weeks after the announcement of Ricardo Dutra as the main executive officer, which is the highest position in the company's hierarchy, replacing Luiz Frias, who started acting only as Chairman. Last year, in mid-October, Alexandre Magnani replaced Dutra, and is now the CEO of PagSeguro.
“Like technology companies and fintechs in Brazil and around the world, PagBank PagSeguro is also making some adjustments to its structure,” said the company to Brazil Journal. In recent months, PagSeguro was already putting some plans into practice to reduce costs. It was even with some renewals of software that are management like Slack and Miro had their cancellations.
Some reports of employees who were fired say that the announcements of these Monday layoffs were protocol: the employees had the notice that they were part of the layoff and that they would be dismissed at that moment. Soon after, the company just turned off its access to computers and servers.
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PagSeguro's shares have fallen by around 55% over the last 12 months, but there are also negotiations at 30% of the IPO price. By the time the company reached its valuation increase, in October 2021, its shares had only plummeted by more than 85%.
At the end of last year, a major factor that hindered the company happened, which was when the central bank fixed ceilings for some credit card interchange fees and even those that were prepaid. As a result, there was a large reduction in PagSeguro's revenue of around 3%, while its profit before all imports fell by 15%.
According to some data collected by UBS BB, PagSeguros was consolidated as the second largest buyer in terms of customer numbers in mid-October, when it started to reach 26% of the market. Unfortunately, the established pace of growth was even lower than that recorded in the previous year (1 pp in 2022 against a total of 5 pp in 2021). And to complete the situation, the company still lost about 5 percentage points with larger retailers, that is, with more than 30 employees.
What grew the most during this period was the Mercado Pago, from about 4% to 10%. A Heaven, which is the industry leader, rose and grew again after four years in a big drop: 34%, three percentage points higher on record than a year earlier.
