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Nubank pulls first mass layoffs, branded as ‘restructuring’

Nubank pulls first mass layoffs, branded as 'restructuring'
Nubank’s São Paulo headquarters. Photo: Alf Ribeiro/Shutterstock

Nubank, the largest digital bank in Latin America with over 80 million customers, announced a “restructuring” of its Brazilian operations sector — “closing” 296 positions this Wednesday morning. 

In a statement, Nubank says the operations area was divided into independent units focused on individual products, aiming to make the digital bank a multi-product platform. “Now, with a robust portfolio, and after a deep analysis of models and processes, the need to consolidate the product teams in a centralized organization was identified. With the new model, some functions and positions became redundant,” Nubank explained.

Prior to this Wednesday, Nubank had only fired a few dozen people simultaneously — even amid the high capital costs scenario that the global and Latin American technology ecosystem is going through.

The company laid off around 40 people late in January as it closed its investment business unit. At the time, Nubank reported having around 8,000 employees, 2,000 more than at the beginning of 2022. 

Then, in March, around 30 employees were dismissed — the information came to light amid the discovery that there is a non-defamation clause in the neobank’s contracts with employees.

Nubank also said it does not foresee further restructuring needs at the moment and that other company areas continue to hire.

In Q1 2023, Nu Holdings — the Nasdaq-listed company grouping Brazil’s Nubank, Nu México, and Nu Colombia — posted a net income of USD 141.8 million, reversing the losses of USD 45.1 million posted a year prior. More importantly, it recorded USD 1.6 billion in revenues, a record for the company. 

With no cash flow problems, the restructuring may result from the company’s plans for the next ten years. As CEO and co-founder David Vélez emphasized to analysts in May, Nubank sees itself more as a “money platform” now, connecting consumers and businesses to financial and non-financial services, than a digital bank. 

The restructuring comes a little less than a week after Nubank became a sponsor of Jornal Nacional, the most-watched newscast in the country. The partnership, which will last until January 2024, is no doubt a multi-million investment, as a one-minute insertion in the newscast breaks can cost more than BRL 1.7 million.