Not very long after Kavak expanded its business to Brazil from its Mexican headquarters, the company announced that it has decided to let go of 150 employees in Sao Paulo and Rio.
The development was reported in the local newspaper on Thursday.
Come up with founded by Paul in 2016 where the company raised to become the first unicorn based out of Mexico by October last year raising the valuation to over $1bn.
Kavak has total funding of $1.6bn and its recent series e round was completed in September of 2021 and was backed by tiger global, SoftBank, D1 Capital partners, and a few more.
In the report to the newspaper, the company stated that these layoffs were part of the economic downturn and also a consideration of the future outlook of the company.
Come back also operates in Argentina aside from Brazil. This development seems to have come to light after recent layoffs at Carvana which laid off around 2,500 employees early last month.
The company started its operations in Brazil early this year and started with an inventory of 4000 cars.