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Mass Layoffs Are Being Seen In These Early Days Of 2023 And Require Quick Solutions To Contain Job Losses In Brazil.
Various episodes of mass layoffs began as early as December 2022, traumatizing Brazilians. However, January 2023 is already announcing a year in which some companies are preparing for things that could worsen. The job market saw more layoffs only at the beginning of the month. In the first 15 days, more than 100,000 workers across the country lost their jobs.
Mass layoffs are affecting most areas of technology. The wave of mass layoffs in tech companies has spread from industry giants – such as Amazon and Facebook – to small and medium-sized enterprises, like the 99 transportation app, and has the potential to spread to many more startups, an industry responsible for millions of jobs across the country.
The “99,” a Chinese transportation app company, has started layoffs in Brazil but did not specify how many people will be laid off. However, the victims are known to affect all areas of the company.
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China alone accounts for 70% of trade within the BRICS, while Brazil establishes itself as an essential supplier of food and minerals: understand how the group, which already represents nearly 40% of the world’s GDP, is changing the game.
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Starting in May, those who do not have registered biometrics will not be able to apply for Bolsa Família, sickness benefits, or unemployment insurance: understand the new rule that changes access to benefits for millions of Brazilians.
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A new law being voted on in Brazil proposes a minimum fare of R$ 10 per trip and R$ 2.50 per kilometer for Uber and 99 drivers, and promises to ensure they earn as well as taxi drivers did during the golden age of taxis in the country.
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Bauer Group collapses after failed judicial recovery: 25 years, 800 vehicles, and a network of gas stations leave a debt of R$ 50 million and 100 layoffs, exposing costs, tight margins, and expensive credit in Brazil.
CVC Corp, one of the largest travel companies in Brazil, also announced layoffs of about 5% of its workforce. In a public statement, the company claimed that the layoffs were part of a “unique restructuring” of the organization. 800 employees were laid off at Big Boi refrigeration in Paraná.
40 Billion Reais In Debt And The Result: Mass Layoffs
Workers at Lojas Americanas are undergoing mass layoffs after declaring in court the existence of debts of over 40 billion reais. The discovery of the billion-dollar gap by the company worried the market, causing a series of layoffs in addition to a sharp drop in the stock market, with the decline of shares in other partner companies of the group, such as Ambev, controlled by the owners of Americanas, and banks like Bradesco and BTG, which are also in crisis. In a statement, Americanas assured that it is committed to “working with creditors to find short-term solutions.” However, despite the expected layoffs, the company has not yet indicated whether it will cut jobs or close stores in the country.
Riachuelo Joins The List Of Companies That Laid Off Workers In 2023
The Guararapes Group, owner of Riachuelo stores, announced the closure of its division in Fortaleza, Ceará. In addition to closing the factory, the company laid off thousands of workers – about 10% of Guararapes’ workforce – and will concentrate production in Natal, Rio Grande do Norte, from now on. Similarly, Eletrobras and its subsidiaries estimate that more than 2,500 electricians will be laid off by mid-2023. Just in Eletronorte, about 600 workers were forced to undergo a VPD (Voluntary Dismissal Program) widely promoted by labor unions. Economists and politicians scrutinized the large number of layoffs recorded at the end of December, particularly in the first half of January.
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