Brazilian fintech PagSeguro is laying off 7% of its workforce as part of a broader wave of job cuts affecting Latin American technology and financial firms. The company, a major player in Brazil's payments sector, stated the layoffs are a structural adjustment to improve efficiency after years of rapid team growth. This move comes amid a challenging period for fintechs, with PagSeguro's shares having fallen significantly. Contributing factors include new central bank regulations capping interchange fees, which threaten to reduce revenue and profits, alongside a tough economic climate of rising interest rates and market uncertainty. The layoffs were announced in January 2023.
