Layoffs in Argentina

Rappi on 2023-01-17.

Ualá, the Argentine fintech company, laid off 53 employees this Wednesday, representing approximately 3% of its total workforce across Latin America. The layoffs affected staff in Argentina, Colombia, and Mexico and were attributed to role redundancies following the company's mergers with four other regional firms this year: Wilobank, Ceibo Créditos, ABC in Mexico, and Empretienda. While acknowledging the broader fintech industry's challenges, Ualá clarified that these cuts were specific to internal restructuring rather than external financial pressures. The company continues to pursue growth, having recently announced plans to invest $150 million in the region and aiming to reach 25 million users in the coming years.

Etermax laid off 40 employees on 2022-11-30.

Lemon, a cryptocurrency startup, laid off 38% of its workforce in Argentina and Brazil in November 2022. The decision, announced by co-founder and CEO Marcelo Cavazzoli, was driven by a challenging market environment characterized by falling crypto prices, reduced venture capital funding, and the broader industry downturn. Cavazzoli emphasized the move was a strategic step to make the company more sustainable and less dependent on future funding rounds, aiming to ensure agility during a prolonged bear market. He clarified that the layoffs were unrelated to the collapse of FTX, though Lemon had previously withdrawn user funds from the platform as a precaution. The restructuring reflects the intense pressures faced by crypto startups during this period of industry consolidation.

Tiendanube laid off 50 employees representing approximately 5% of its workforce on 2022-10-17.

Argentinian cryptocurrency exchange Buenbit has laid off approximately 45% of its workforce, affecting around 80 employees, as part of a restructuring effort in response to the broader tech industry downturn. The company, which operates in Argentina, Mexico, and Peru, now has a team of 100 people. This significant reduction, announced in May 2022, is aimed at achieving a self-sustaining business model by focusing on existing markets and halting previous expansion plans into countries like Colombia and Brazil. The decision, unrelated to the collapse of UST and Luna, reflects the challenging funding environment and a strategic shift toward efficiency amid a changing macroeconomic landscape.