By Brazil Stock Guide – Mercado Livre has laid off 119 employees across Latin America in recent days, marking the company’s first workforce reduction explicitly linked to the expansion of artificial-intelligence tools. Of the total, 38 positions were cut in Brazil. The information was reported by Folha de S.Paulo.
The layoffs were concentrated in user-experience teams, particularly among UX writers responsible for content production. Most dismissals occurred on January 8, when employees were called into last-minute meetings, according to people familiar with the matter. The move reflects a broader internal shift toward greater reliance on AI-assisted tools and more generalist professional profiles within product and design functions.
In a statement, the company said the decision was not driven by a direct substitution of employees by automated systems. Instead, Mercado Livre said it is integrating its design and content areas more efficiently while using technology to improve customer experience. The company described the cuts as isolated and said they do not alter its long-term growth strategy.
Artificial intelligence has been part of Mercado Livre’s operations for more than a decade, supporting areas such as risk analysis, fraud detection and recommendation systems. Over the past year, however, AI tools have expanded more aggressively into user-experience workflows. Employees were encouraged to adopt the technology, trained to use it and asked to document its application as managers tracked usage metrics across teams.
Following the layoffs, remaining staff were informed they would gain access to new AI tools for text production starting this week. Designers are now expected to absorb part of the writing tasks previously handled by specialized UX writers, reinforcing management’s push for hybrid roles.
The organizational changes come as the company maintains strong financial momentum. In the third quarter of 2025, Mercado Livre reported net revenue of about R$ 40 billion, up 39% year on year, extending a streak of 27 consecutive quarters with revenue growth above 30%. The group says it created 42,000 jobs in Latin America in 2025, underscoring the contrast between rapid expansion and selective restructuring.
The latest job cuts highlight how even high-growth technology leaders are recalibrating their workforce as artificial intelligence reshapes productivity, roles and cost structures—often faster than corporate narratives are willing to acknowledge.