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.