Massive closure of companies due to the State and the political class

Since March 1, 2025, when Yamandú Orsi took office, Uruguay has experienced a significant increase in business closures, driven by factors such as high labor costs, tax pressure, union conflicts, and lower regional competitiveness.

According to data from the National Institute of Statistics (INE), in the first quarter of 2025, 7,540 business closures were recorded, an increase of 62% compared to the same period in 2024.

The trend of closures has accelerated in the first nine months of 2025, especially affecting the industrial and manufacturing sector, which represents only 10% of Uruguay's GDP compared to 20% in neighboring countries such as Paraguay.

The closures have caused concern in the business sector and among the general population.

Some cases of closed companies

Yazaki, Verizon, La Gotita, Quesos Alpa, Calcar, Claldy, Minerva Foods, Conaprole's Rivera plant, and countless other smaller companies that are not as well known have shut their doors in recent months.

Since last March, these companies have closed, stopped paying taxes, and a large number of employees have lost their jobs.

An expensive country

A country with very high taxes, an infernal state bureaucracy, and a mafia-like and violent unionism that only serves to harm entrepreneurs who want to move forward and workers who want to work.

Uruguay's left-wing government has, in just a few months, increased unemployment and caused the closure of large, medium, and small companies.

The only solution Orsi's government can come up with is to keep inventing new taxes to punish entrepreneurs and continue increasing costs.

A failed Chavista policy that, far from generating economic growth, leads to business closures and the consequent dismissal of workers.

The union response

From PIT-CNT, the Broad Front union center, its only ideas are to organize strikes, walkouts, and occupations.

They also demand excessive wage increases that they know perfectly well companies will not be able to pay.

The union bureaucracy is more concerned with applauding the narco dictatorships of Cuba and Venezuela than with the conditions of Uruguayan workers.

As is easily seen, the outlook is dire. A government that increases taxes, bureaucratic procedures, and a bullying unionism that destroys companies and harms entrepreneurs and workers.

It has only been 6 months of government and this will undoubtedly get worse.