MercoPress. South Atlantic News Agency

Verizon departs Uruguay, leaving 265 unemployed

Uruguayan unions and authorities are seeking solutions for the people left without a job

Telecommunications multinational Verizon's decision to shift its Uruguayan operations to Chile has resulted in the layoff of 265 workers hired by Alorica, a third-party provider handling customer services for the US giant from a free trade zone in Montevideo.

The move was part of Verizon's “global restructuring,” although it was hinted that it could be in response to policies from the US government under the President Donald Trump administration aimed at discouraging outsourcing and bringing jobs back to the United States.

In response to the layoffs, the Uruguayan Federation of Commerce and Services Employees (Fuecys) has requested that the government extend the unemployment insurance for the affected workers to one year.

Alorica will retain some of its workforce, but is unable to relocate the laid-off employees to other projects. Union representatives submitted a proposal for Alorica to relocate some of the employees to other initiatives that the company manages locally, such as the TikTok social network project. The company did not rule out the possibility that more people assigned to the TikTok project could eventually enter the same unemployment protection scheme.

As per the notification sent to the Uruguayan Labor and Social Security Ministry (MTSS), all contracts would end Sept. 1, while Aug. 30 was the last day of activities. The MTSS is to hold a meeting with Fuecys leaders to seek solutions for workers. The MTSS has also offered conciliation and labor consultation services.