Spanish Edtech Unicorn Domestika Downsizes Latin America Operations

Bloomberg Línea — Spanish edtech unicorn Domestika has made cuts in Brazil and other Latin American countries in a global downsizing that comes just a year after the online course platform was valued at $1.3 billion in January 2022, when it received $110 million in a Series D led by Zeev Ventures, with support from GSV Ventures.

In addition to Brazil, the cuts affect local production offices in Peru, Chile and Argentina, Bloomberg Línea can reveal.

In Mexico, even with the probable downsizing of the company’s team, the production of courses will likely be maintained.

In a note sent to Bloomberg Línea, Rodrigo Ferreira, country manager of Domestika in Brazil, said that for reasons of operational efficiency, Domestika “is analyzing the possibility of consolidating the production of courses in Portuguese from Madrid.

“Consequently, should the decision be finally adopted, this would imply the closure of the recording studios in São Paulo, and an as yet undefined percentage of Domestika Brazil’s current 26 employees would be affected,” Ferreira said.

People familiar with Domestika operations told Bloomberg Línea that the cuts would have been made on Tuesday, and that only Ferreira would have remained in the Brazilian operation. The company declined to comment.

According to Ferreira, the review process is happening right now, from the company’s offices in the United States, with the collaboration of the leadership in Brazil.

Domestika is said to have more than 500 employees worldwide.

According to Ferreira, in no case would this change Domestika’s commitment to the Brazilian market, where it will continue to have a presence, collaborating with the best professionals in the country, developing partnerships and commercial actions, including the production of courses in Portuguese”.

This is not the first downsizing by Domestika, with the company having already made layoffs in Brazil in March 2022.

At that time, employees were not hired under the country’s labor law regime (CLT), and Domestika is being sued by former employees concerning their labor rights. In recent months, the company has been registering its employees under Brazil’s labor laws.