FEMSA Cuts 1,300 Jobs and Puts the Brakes on OXXO's Spin Ambitions

Femsa is adjusting its fintech strategy after facing challenges in scaling its digital financial services, reflecting the growing complexity of competing in Mexico’s evolving financial ecosystem.

Workforce cuts and restructuring signal strategic shift

Fomento Económico Mexicano SAB (Femsa), one of Mexico’s largest retail operators, has reduced headcount in its fintech unit Spin as part of a broader organizational adjustment. According to sources familiar with the matter, the company eliminated hundreds of roles within Spin, contributing to approximately 1,300 layoffs across multiple divisions, including retail and Coca-Cola bottling operations.

The restructuring comes as the company’s new leadership focuses on cost optimization and operational efficiency. While most affected roles were in support functions, Femsa described the move as part of a “natural evolution” aimed at maintaining agility.

In a statement, the company emphasized its scale, noting it remains Mexico’s largest private employer with around 263,000 employees domestically, marking a 9% increase compared to 2021.

Spin’s original ambition faces execution challenges

Through Spin, Femsa aimed to transform its network of more than 24,000 Oxxo convenience stores into a financial services gateway. The strategy targeted Mexico’s large informal economy, where cash dominates and trust in traditional banking remains low.

The fintech platform allows users to deposit and withdraw cash at Oxxo locations while accessing digital financial tools such as payments, credit, and loyalty programs. The broader goal was to drive financial inclusion while increasing in-store traffic.

However, despite user growth, the initiative has not delivered the expected commercial impact.

“Spin has not met expectations in terms of becoming a tool to drive store traffic,” acknowledged CEO José Antonio Fernández Garza-Lagüera during a recent earnings call.

Limited impact on Oxxo traffic and user engagement

Although Spin has attracted millions of users, this growth has not translated into increased foot traffic in Oxxo stores. In fact, store traffic declined by 0.6% in the fourth quarter of 2025.

The platform has more than 16 million users, but only about 65% are active. Meanwhile, its loyalty program, Spin Premia, counts 63.1 million users, with 44% classified as active.

These figures highlight a gap between user acquisition and consistent engagement—an issue that has influenced Femsa’s decision to scale back the initiative.

Competitive pressure intensifies in Mexico’s fintech space

Spin operates in an increasingly competitive landscape, facing well-capitalized players such as MercadoLibre, Nu Holdings, and Revolut, alongside established financial institutions and retail giants like Walmart de México.

While Femsa benefits from Oxxo’s extensive physical presence across Mexico, competitors have advanced rapidly in digital adoption and product innovation.

Analysts point out that operating a fintech business carries significant regulatory and operational costs.

“The fundamental issue with Spin is its inability to define a compelling value proposition,” said Gilberto García, director of strategic advisory at Miranda Partners. “Running a fintech is inherently expensive due to compliance requirements and the need for large teams.”

Strategic pullback: reduced scope and paused banking ambitions

As part of its recalibration, Femsa is reducing Spin’s scope and has paused efforts to obtain a banking license. Future progress in this area will depend on the performance of its credit business.

The company is also limiting third-party partnerships within its loyalty ecosystem and reintegrating Spin into its broader corporate structure to streamline operations. These moves suggest a shift from aggressive expansion toward consolidation and focus.

Internal challenges and repeated restructurings

Spin’s latest overhaul marks its fifth restructuring in recent years, contributing to internal uncertainty. Employees have described a lack of clarity around the unit’s long-term mission, compounded by frequent leadership and strategic changes.

Some insiders also pointed to a disconnect between management and local market realities, noting that several executives were hired internationally and may lack deep familiarity with Mexican consumer behavior.

A long-term opportunity remains, but execution is key

Despite current setbacks, the opportunity in Mexico’s financial services sector remains substantial. Millions of consumers in the informal economy still lack access to credit and banking products, while demand continues to grow for services such as remittances and digital payments.

However, trust remains a major barrier. According to Mexico’s Finance Ministry, nearly half of the population remains skeptical of traditional financial institutions.

Analysts remain generally optimistic about Femsa’s broader outlook, though some question whether fintech should be a core priority.

“From our perspective, Spin is not one of the company’s main priorities,” said Antonio Hernández, director of fundamental analysis at Actinver, who supported the decision to centralize operations.

Femsa balances expansion with operational focus

Spin represents only a small part of Femsa’s global operations, which span 18 countries and include retail, bottling, pharmacies, and fuel stations. The company continues to expand its Oxxo footprint and diversify geographically, with projections estimating more than 31,000 stores by 2030.

While the fintech initiative has yet to deliver its full potential, Femsa’s latest adjustments reflect a broader effort to balance innovation with operational discipline in a competitive and rapidly evolving market.