By Brazil Stock Guide – Itaú Unibanco (B3: ITUB4) faces a class action from the Bank Workers’ Union of São Paulo, Osasco and Region after dismissing about 1,000 employees on Sept. 9. The layoffs, reportedly tied to low productivity under remote work arrangements, were made without prior union consultation, potentially breaching the sector’s collective bargaining agreement.
The union said the cuts are “unjustifiable” given Itaú’s net income of R$22.6 billion ($4.2 billion) in the first half of 2025. It added the move may violate Brazilian labor law, which requires negotiations before mass layoffs. The bank has not confirmed the number of employees affected.
Union leaders staged a protest yesterday at Itaú BBA’s headquarters on Avenida Faria Lima in São Paulo, where the bank’s president and senior executives are based. The demonstration renewed criticism of the dismissals, which the union said flouted collective bargaining rules and basic job protections.
“A bank that earns billions cannot treat workers as disposable numbers,” said Neiva Ribeiro, president of the union, after a meeting with dismissed employees on Sept. 11.
Legal and reputational risks
The dispute may intensify debate over remote work productivity in the financial sector. Global banks have tested different hybrid models since the pandemic, yet performance metrics continue to spark friction with unions.
In the United States, JPMorgan Chase told hybrid employees to return to the office five days a week in 2025, citing culture and innovation. Goldman Sachs and Morgan Stanley also pushed staff back to the office, rolling back pandemic-era flexibility.
The lawsuit could put Itaú at the center of a labor clash just as it seeks to cement its leadership in Latin America. Legal and union pressure may raise costs and weigh on the bank’s reputation amid growing scrutiny of corporate labor practices.
Leave a Reply