Amid Strong Layoffs in Tech Space, MercadoLibre to Add Over 13,000 Jobs

UTC by Bhushan Akolkar · 3 min read
Amid Strong Layoffs in Tech Space, MercadoLibre to Add Over 13,000 Jobs
Photo: Wikimedia Commons

MercadoLibre has witnessed a strong surge in business post the Covid pandemic as it looks to hire more people into logistics operations in Mexico and Brazil along with the company’s tech and product teams.

Over the last year and more, top organizations from the tech world have announced multiple rounds of layoffs. Although the jobs market is totally on the downhill, Latin American giant MercadoLibre is currently on a hiring spree.

MercadoLibre Adds New Jobs

During an interview with Bloomberg on Thursday, April 20, MercadoLibre’s Chief People Officer Sebastian Fernandez Silva said that they are planning to add 13,000 jobs this year. This hiring shall majorly focus on logistics operations in Mexico and Brazil along with the company’s tech and product teams. Speaking on the development to Bloomberg, Fernandez said:

“It’s very important for us to have a stronger, more robust logistics network that allows for faster, cheaper deliveries for users”.

He also added that the hiring will bolster MercadoLibre’s fulfillment network, especially in smaller cities. Previously, the Latin American e-commerce giant has stated that in order to expand its distribution and service centers, it plans to invest $3.6 billion in Brazil and $1.6 billion in Mexico this year.

Bloomberg also reported that the company will fund its hiring effort entirely through in-house revenue without any need for additional financing. The development comes at a time when other eCommerce players like Amazon have been cutting jobs significantly.

Last month, Amazon announced another 9,000 job layoffs following the 18,000 job cuts earlier this year in January. Justifying their action, Amazon CEO Andy Jassy said:

“This made sense given what was happening in our businesses and the economy as a whole. However, given the uncertain economy in which we reside, and the uncertainty that exists in the near future, we have chosen to be more streamlined in our costs and headcount.”

Navigating the Regulatory Uncertainty in Latin America

During the pandemic period of 2020-2021, eCommerce giant MercadoLibre was on a massive expansion phase in the Latin American market. Speaking to PYMTS last year, MercadoLibre’s Karen Bruck said that “eCommerce penetration [before the pandemic] was way lower [in Latin America] than in the US or other regions, such as Asia or China, in particular. eCommerce penetration more than doubled in Latin America during the pandemic, but the biggest difference from other regions is that it never stopped growing.”

However, she said that merchants looking to hop on the trend need to understand the industry particulars first. She further added that the eCommerce landscape in Latin America has an extremely diverse set of countries and consumers. Speaking to PYMTS, Bruck added that “Latin America is very fragmented, and the regulations in each one of the countries are different. If you go to Brazil, you will have a completely different market from the one in Mexico, Argentina or Colombia, and also different regulations in terms of how to invoice and import products.”

Business News, News
Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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