Mexico's Femsa cuts workers at Spin fintech division

MEXICO CITY, March ‌20 (Reuters) - Mexican ​retailer ​and bottler Femsa said on Friday it is laying off workers in its fintech ‌unit Spin, which launched a digital wallet app ⁠for payments and financial transactions in 2021.

Femsa did not disclose ‌the number of positions ‌that it is eliminating, but a spokesperson said the move is part of a new phase ​meant to prioritize its chain of Oxxo convenience stores.

"This process has primarily focused on support functions, ⁠without impacting operations for our customers," the company said in a statement.

Bloomberg ​reported earlier on Friday that hundreds of positions were eliminated at Spin as part ​of wider layoffs across several ‌divisions of the conglomerate.

A number of fintech companies offering digital wallet services have ⁠sprung up in Mexico in recent years. Femsa, best known for its ubiquitous Oxxo stores, has aimed to merge ⁠the area with its brick-and-mortar consumer business, which runs a ​great deal on cash, and where shoppers can also pay bills and transfer money.

In its fourth-quarter earnings report, Femsa said ‌it was delaying its application for a banking license until it saw more ‌momentum in its consumer credit services. It added it ⁠will no longer ‌seek third-party partners for ​the Premia loyalty platform available through Spin.

(Reporting by Natalia Siniawski, Editing by Daina Beth ‌Solomon)

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