How Bad Hiring Decisions Destroyed These Startups

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December 26, 2025
Startup Failure Case Studies
How Bad Hiring Decisions Destroyed These Startups

The expert explains that the job growth in the following year will depend on how the economy will behave in the following months so that it will be the employers who will decide on the rise of the work force by the following year and that is why there is panic and even the investment has been discontinued to prevent laying down of workers. We have to observe the way national and international economic conditions are shaping up to make decisions. The current low consumption cycle is already affecting organizations, showing how bad hiring decisions destroyed their performance.

Able to maintain their spending rate, are forced to stop investment as an attempt to terminate some employees, Reynoso ensures talking to El Economista. Permanent jobs destruction, as cited by IMSS, was worst in a decade last month, when 4,037 jobs were lost in July. And we don not appreciate what we are and what we have ourselves.

Small businesses come with big risks

It seems to me, that is a very strong wake-up call, he adds. It is in that regard, that one must deal with two challenges, identifying it and putting it into the correct context. The poor recognition of the Mexican talent in the national territory, according to Reynoso, has also been led by a bad habit that is Managing through the friendship.

I use friendship very much indeed in Mexico to get an appointment, that must stop. It continues in the family firms, in start-ups, and even in big companies. In case of friendship he details, we would rather appoint a good friend than work with the talent you need.

The inherent risks of a bad hire

The shift of position, he remarks, is to go back to the fundamental elements of the labor relationship, which are proper remuneration, healthy environment and cooperative effort, good communication, and openness. All this amounts to a grounded stable labor relationship in the operation of any organization. Labor reform is one of the significant variables this year that has influenced the Human resources operation and consequently, the existence of organizations, as he puts it.

The legal transformation that takes place in the working sphere will make Human Resources departments guarantee that the businesses possess a healthy organizational climate and good managing of a human capital. There is also the freedom of union affiliation that the workers will enjoy, and this will be an opportunity to work on the labor relations. To them, a major challenge that leaders of companies encounter is connection. Such a relationship between the employees and the leaders is important in the development of an organization, Reynoso assures.

The Ripple Effect

According to him that is what you need when you have a leader that creates trust, who knows how to communicate, who is trying to integrate, who keeps the balance of life that is where it begins. In that regard the 54th edition of the International Human Resources Congress, organized by Amedirh, will occur the 11th and 12 of September next in Mexico City with the aim of discussing issues like the role of the leadership in relation with the work teams, technology, society, and economic environment. Besides, we will discuss inclusive leadership, the practice of the labor reform.

Human capital satisfaction in the workplace. Reynoso concludes, We are not going to discuss some theoretical models, we will be talking about experiences. I have long been studying the ecosystem of start-ups in Spain and I have hardly encountered a more graphic example of self-destruction by a corporation than that of Bipi. It is capital sin in the business world, at least in my opinion, to lose a bit of customer trust in exchange for some short term money. and the most amazing bit about the case is.

Conclusion

That they are walking into this trap when the vehicle subscription model was just beginning to gain momentum in Spain. I came to know last week that Bipi had modified the contractual terms unilaterally applied on its users. They increased their fine management fee from 19.99 to 40 and increased the penalties of early cancellation by dramatic amounts. Their justification? It was enough that they update them on their site. Being an analyst, I have witnessed too many startups to fail to understand when one is going the wrong way. Bipi was launched in 2017 using a groundbreaking new idea.

It would liberate an unprecedented amount of people by making vehicles more accessible using a flexible subscription service. The idea that decidedly appealed to the market and investors and eventually led Renault to buy it in 2021 at the price of 100 million euros. The figures indicated that this bet is likely to be good: 160,000 registered users and functioning in three countries in Europe. What I am witnessing however is alarming. The story of Alejandro Novo, that spent 42 thousand euros in four years and left a vehicle with a good condition when he returned them.

Article by Nicholas Saputra

I am a professional content writer specializing in Bali travel topics, creating informative and engaging articles for global audiences. My work focuses on destinations, culture, and practical travel insights.

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