Itaú Unibanco, Latin America’s largest private bank, has drawn fire after dismissing about 1,000 employees this week following a productivity review of staff working remotely or in hybrid arrangements.
The decision came after months of monitoring through apps that tracked computer and software activity. The bank reportedly collected data on time spent on specific websites and task management tools, periods of inactivity, and even click rates.
That information was then compared against working hours and overtime records, as employees are required to clock in and out. Another roughly 1,000 workers were reportedly flagged as underperforming and formally warned by their supervisors.
Itaú cited “behavioral deviations” and a resulting “breach of trust” as grounds for dismissal. Some of the fired employees, however, told reporters they had met productivity targets — and in some cases had even been recently promoted.
The banking workers’ union in São Paulo, where Itaú is headquartered, condemned the move, saying it was “unreasonable to use vigilance to justify massive layoffs.” Union leaders questioned why employees had not been warned about behavioral issues before termination and stressed the bank’s strong financial performance. They plan to meet with dismissed workers today to discuss next steps.
Itaú employs about 85,000 people in Brazil, with roughly 60% working in hybrid or remote arrangements and the remaining 40% in bank branches.
The century-old institution’s move has reignited debate over productivity, surveillance and labor law in the digital age. Under Brazilian law, workplace monitoring software is permitted as long as employees are notified, while remote work arrangements are often negotiated with unions. Itaú maintains it complied with both requirements.
The controversy comes amid a broader retreat from remote work in Brazil. In Q2, São Paulo’s high-end office vacancy rate fell to 17%, its lowest since 2020, according to real estate company JLL. Job platform Gupy reported rising on-site postings, while remote listings dropped.
👉 Why it matters. Even as office mandates return, workers continue to demand flexibility. A recent survey of 1,400 Brazilian employees by business school Insper and HR firm Robert Half found that the share of people expecting to work from home at least once a week jumped from 31% pre-pandemic to 83% today.
A majority said they would quit if required to return to the office full-time. With a tight labor market, employees may feel emboldened to hold that line.
Itaú posted BRL 11.5 billion (USD 2.1 billion) in profits in Q2 2025, up 3.4% from the previous quarter and 14.3% from a year earlier. The bank has also faced recent controversies over dismissals: in late 2024, it abruptly fired its chief marketing officer for allegedly misusing a company credit card, and it remains embroiled in a legal battle with a former CFO over accusations that he received kickbacks from accounting contracts.
