Itaú Initiates Wave of Layoffs at Subsidiary Zup Innovation with “Startup” Brand Overhaul

Itaú, Through Its Subsidiary Zup Innovation, Developer of Technologies and Products Headquartered in Uberlândia, Minas Gerais, Promoted Wave of Layoffs This Week, According to Information Released by Layoffs Brazil.

The company, acquired by the bank in 2019 for R$ 293 million (51% of the shares), underwent a rebranding process in 2021 and adopted a more “startup-like” approach, integrating product, user experience, and other complementary competencies to its core business in IT.

The information released by Layoffs Brazil indicates that around 50 professionals have been affected by the cuts so far, but former employees stated on social media that the number could be even higher, exceeding 150.

Employees at Zup reported that the company is undergoing an internal restructuring of its strategy and transitioning to a technology company, resulting in the dismissal of leadership positions, team leads, POs, UX, and QA.

Zup Confirmed the Cuts but Did Not Provide Details Regarding the Number of Affected Individuals and the Areas Impacted.

The company released a statement stating that it constantly evaluates its business units to adapt to customer needs and that the current efforts and movements aim to specialize employees and minimize impact on teams. The company demonstrated its commitment to assisting all employees in their transitions and stated that it has always acted in a respectful and humanized manner.

The “startup-like” posture adopted by technology companies like Zup has become a trend in recent years, with the intention of boosting portfolios and attracting more professionals from complementary areas to the core business. Examples of companies that have adopted this posture and have similar layoff movements include CI&T and Ilegra.

CI&T, for its part, could not restrain its comments on social media, as a list circulated with over 120 names of people dismissed by the company in March.

Ilegra Has Adopted a More Discreet Posture Regarding Layoffs, Eliminating Positions Less Connected to Its Core Business.

Zup has 3,000 employees, meaning the cuts affected approximately 5% of the workforce. The company has four open-source products in the market and specific developments for clients such as Via Varejo, Sodexo, and Elo.

With the rebranding in 2021 and the more “startup-like” posture, Zup opened a new office in São Paulo, with an environment fully in line with the “startup-like” aesthetic. Itaú, which was a client of Zup before the acquisition, committed to acquiring more shares over the next few years. Before the layoffs, Zup had already faced scrutiny for alleged abusive practices against employees.

Mass Layoff

This year, what is most talked about is mass layoffs. Several large and small companies drastically reduced their number of employees. Bridgestone laid off 600 employees, GM carried out mass layoffs in the U.S. Banks like Itaú (mentioned above) and the German bank and Banco Neon were also targets of job cuts.