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August 8, 2022
June 14, 2024

Loggi Layoffs: What Happened & Why?

In August 2022, Loggi, a startup in the logistics industry, laid off around 15% of its workforce, affecting approximately 500 employees across various departments. This article will discuss the reasons behind these layoffs, the company's recent leadership changes, and the potential future impact on Loggi and its employees.

Why did Loggi have layoffs?

Loggi's decision to lay off around 15% of its workforce was primarily driven by the need to reduce costs in response to current market conditions. The company experienced a significant increase in revenue during the pandemic but has seen a decrease recently. Former employees mentioned that the layoffs were not entirely unexpected, as a consultancy had been working with Loggi to review the budget. In addition to the layoffs, Loggi also underwent internal restructuring, including a change in CEO, with the founders joining the company's board.

Industry analysts suggest that Loggi's layoffs are part of a broader trend in the startup ecosystem, where companies are facing economic pressures and are making strategic decisions to ensure their sustainability. Other startups, such as VTEX, Alice, Loft, and QuintoAndar, have also implemented layoffs in recent months. The layoffs at Loggi also reflect the economic trends in the industry, as SoftBank, an investor in Loggi, recently reported significant losses and announced plans to reduce its workforce to generate more efficiencies.

Financial Impact and Future Directions

Loggi's recent layoffs are part of a strategic initiative to streamline operations and manage expenses due to declining revenues. The company has provided severance packages that include three months of health insurance coverage and job placement support. With recent leadership transitions, including the CFO taking over as CEO, Loggi is likely reassessing its plans for a potential IPO, which has been in consideration for the past two years. While the broader strategic adjustments remain under development, these changes are geared towards enhancing the company's financial stability and market position.

Impact on Industry

The role of Loggi in the logistics industry continues to evolve following the layoffs. While specific new strategic directions are yet to be announced, the reduction in workforce might intensify the competition for skilled professionals in the industry, as former employees seek new opportunities. Moreover, Loggi's cost-cutting measures and organizational restructuring are likely to set a precedent for other startups in the sector, prompting them to evaluate their financial and operational strategies.


The recent layoffs at Loggi, motivated by the need to reduce costs and adapt to changing market conditions, reflect a common trend across the startup landscape. The future influence of Loggi on the logistics sector is still forming, with potential further adjustments to its business strategy and operational focus likely. These changes could catalyze shifts within the industry, fostering competition for talent and inspiring other startups to rethink their strategies to ensure long-term sustainability.