TransportationBR

Kavak Layoffs

June 2022

Kavak announced a layoff affecting 150 employees in June 2022. The company operates in the Transportation sector.

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People Affected

150

Announced Date

Jun 8, 2022

Company Information

Industry
Transportation
Country
BR
Region
Sao Paulo, Non-U.S.
Last Updated: Apr 18, 2026

About

Mexican startup Kavak, Latin America's largest unicorn, has laid off at least 150 employees across its operations in Rio de Janeiro and São Paulo, its key markets in Brazil, with cuts occurring since March 2022. The layoffs, affecting roles from mechanics and inspections to content and operations, are attributed to underperformance in its used car buying and selling business. In Rio alone, recent dismissals reached around 100, including 40-50 at its Nova América location, which had 150-180 staff. This downsizing contrasts with earlier expansion plans, such as investing R$550 million and hiring 1,000 employees in Rio by year-end, signaling a strategic pullback amid operational challenges in the competitive automotive retail industry.

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