Itaú promotes wave of layoffs at subsidiary Zup Innovation with rebranding “startupeira”

Itaú, through its subsidiary Zup Innovation, a developer of technologies and products based in Uberlândia, Minas Gerais, promoted a wave of layoffs this week, according to information released by Layoffs Brasil.

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

Information released by Layoffs Brasil indicates that around 50 professionals have been affected by the cut so far, but former employees said on social networks that the number could be even higher, surpassing 150.

Zup officials reported that the company is undergoing an internal overhaul of its strategy and shifting to a technology company, which has resulted in layoffs in leadership, team lead, POs, UX and QA roles.

Zup confirmed the cuts, but did not elaborate on the number of people affected and the areas affected.

The company released a note in which it claimed to constantly evaluate its business units to adapt to customer needs and that current efforts and moves 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 always acted in a respectful and humane manner.

The “startup” attitude adopted by technology companies, such as Zup, has become a trend in recent years, with the intention of leveraging portfolios and bringing in more professionals from complementary areas to the core business. Examples of companies that have adopted this stance and had similar layoffs include CI&T and Ilegra.

CI&T, in turn, could not hold back its comments on social networks, as a list circulated with more than 120 names of people dismissed by the company in March.

Ilegra has adopted a more discreet posture in relation to dismissals, eliminating positions that are less connected with the core of its business.

Zup has 3 employees, which means that the cut affected approximately 5% of the workforce. The company has four open source products on the market and specific developments for customers, such as Via Varejo, Sodexo and Elo.

With the rebranding in 2021 and a more “startup” attitude, Zup opened a new headquarters in São Paulo, with an environment that is completely in line with the “startup” aesthetic. Itaú, which was a Zup customer before the acquisition, has committed to acquiring more shares over the next few years. Zup, prior to the layoffs, had already faced trial for alleged abusive practices against employees.

mass dismissal

This year, what is most talked about is mass layoffs. Several large and small companies have drastically reduced their headcount. A Bridgestone laid off 600 employees, GM carried out large-scale layoffs in the US. Bank such as Itaú (cited above) and German bank and the neon bench were also targets of job cuts.