Stone dismisses 370 employees; union speaks of replacement of workers by AI
Brazilian payment company Stone has dismissed 370 employees, prompting concerns from the workers' union regarding the replacement of jobs by artificial intelligence.
Stone, a Brazilian payment processing company, announced the dismissal of 370 employees, which accounts for about 3% of its total workforce of 11,000 to 12,000. The company's management described this move as part of a continuous process of structural adjustment aimed at simplification and efficiency gains. Despite the significant number of layoffs, Stone reassured its clients and partners that operations would continue unchanged, with no anticipated negative impact on services.
The union representing technology workers in São Paulo, Sindpd-SP, expressed strong disapproval of the layoffs, characterizing them as a mass dismissal. The sudden nature of the layoffs became a point of contention, particularly as they occurred during ongoing negotiations for a collective agreement. The union noted that such mass layoffs should be preceded by negotiations, referencing a stance from Brazil's Supreme Federal Court (STF) that supports the necessity of dialogue in such situations.
In response to the layoffs, the union has indicated it may pursue collective legal action to seek reintegration of the affected workers. This highlights growing tensions between labor rights advocates and companies looking to streamline operations, potentially using technology such as artificial intelligence to reduce reliance on human labor. As the situation develops, it remains to be seen how it will influence labor relations in the industry, especially regarding the balance between technological advancement and job security for workers.