Q COSTA RICA — On Thursday, we learned that Western Union plans to move some of its operations from Costa Rica to Guatemala, Lithuania, and the Philippines.
An employee, speaking on condition of anonymity, said the main reason for the relocation was cost reduction. According to the employee, the company had lost ground after failing to invest in technology and artificial intelligence quickly enough.
“With the emergence of new technologies, the company fell behind its competitors,” the employee said. “The company also indicated that the decline in the exchange rate was affecting its operations, which led it to choose a lower-cost location such as Guatemala.”
In a letter to employees, Western Union Chief Operating Officer Ben Hawksworth confirmed the changes were part of a broader relocation and efficiency strategy.
The transition will occur gradually over the next year and is expected to be completed by mid-2027, according to the company’s communication to employees.
Western Union will not completely shut down its operations in Costa Rica. The company said it will maintain an active presence in the country, and money-transfer services—including sending and receiving funds—will continue without interruption for customers and agents.
Western Union currently employs more than 1,200 people in Costa Rica.
The company said some functions will remain in the country, even though other roles and operations will be transferred abroad.
Western Union has operated in Costa Rica for the last 28 years.
Despite the changes, Western Union continues to describe Costa Rica as one of its key operational hubs.