Between 2020 and 2026, Brazil, Mexico, and Chile saw the highest number of layoffs in regional startups, particularly in the digital financial sector. The global wave of tech layoffs peaked in the first quarter of 2023, affecting over 160,000 workers worldwide. In Latin America, fintech and crypto firms were hit hardest by shifts in financing conditions.
The global wave of tech layoffs, peaking in the first quarter of 2023 with over 160,000 worldwide dismissals according to Layoffs data, significantly impacted Latin America. Brazil led the adjustments, with Stone reporting 1,300 layoffs, followed by Pagbank and Oyo at 500 each. These firms, mostly in fintech, were affected by rising financing costs after U.S. interest rate hikes from 2022.
In Mexico, cuts focused on financial services and crypto, where Konfio and Bitso each recorded 180 layoffs, and Kueski added 90. This coincided with the 'crypto winter' and global monetary tightening, limiting capital access. Chile, with a smaller ecosystem, saw Cornershop top the list with 250 layoffs in foodtech, followed by health startups like Examedi and Batterfly.
Other countries also faced cuts: in Argentina, Lemon and Buenbit led with 100 and 80 crypto-related layoffs respectively, while Ualá added 53; in Colombia, Tul reported 100 and Hunty 30. The regional context mirrors the end of the post-pandemic digital boom, fueled by low rates and abundant venture capital from 2020 to 2021. With inflation and a shift to profitability, non-self-sustaining startups encountered challenges.
Analysts view these layoffs as a maturation phase for Latin America's tech ecosystem, not a structural crisis, as capital became more demanding but did not vanish.
