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Due to rise in operating costs, layoffs in Cancun likely says business council

Cancun, Q.R. — The business sector of Benito Juárez says that due to an increase in operating costs combined with inflation, layoffs are likely to be announced at the beginning of the year.

Inna Germán Goméz, president of the Caribbean Business Coordinating Council, explained that members have already expressed the need to resort to layoffs as part of the preparation for next year’s budget.

She explained that 2019 will be a financially complicated year for Cancun companies, which will make it necessary to cut staff to cover expenses and continue operating.

“We have the issue of the rise in electricity which is hitting us hard. Companies are struggling to pay the upcoming holiday bonuses. We must take action,” she said.

She noted that at the beginning of the year, many other business costs will arrive including the paying of taxes and operating license permits.

According to the Ministry of Labor and Social Security, there are 300,000 formal workers in Benito Juárez making it the municipality with the largest number of workers, of which 33 percent are concentrated with companies affiliated with the Caribbean Business Coordinating Council.

Figures from El Instituto Nacional de Estadística y Geografía show inflation reached 4.9 percent in October, a figure influenced by the rise in cost of electricity. Chetumal and Cancun were placed among the top 10 cities in the country with the largest drastic upward variations in terms of consumer prices.