Visa plans to cut workforce by 7%. The company says AI isn’t the only reason behind the cuts. It’s just a sign that the business is changing.
For decades, layoffs were usually a sign that a business was in trouble. Today, they can also be a sign that a business is changing
Visa, which runs the world’s largest payments network, plans to cut about 7% of its workforce as CEO Ryan McInerney moves to streamline the company and invest more in growth areas, according to a memo confirmed by CNBC.
The company plans to eliminate roughly 2,600 positions, mostly in its technology and product operations, according to the memo. Impacted employees will start to be contacted on Tuesday for next steps and transition assistance. Visa had about 34,100 employees at the end of its last fiscal year.
“To capture the opportunities ahead and best position Visa to lead this transformation, we must continue evolving how we work,” McInerney wrote. “AI is also helping to accelerate this evolution and shape the way work gets done at Visa.”
“As a result of the choices we have made over the past few years, we are entering a new era in commerce with a business that has real momentum,” McInerney wrote, citing good financial results and client satisfaction.
Ives Tay, an independent consultant, commented: „The company isn’t struggling. It’s profitable. It’s continuing to invest. It’s expanding into new growth areas. And it’s still cutting jobs. That tells us something important. For decades, layoffs were usually a sign that a business was in trouble. Today, they can also be a sign that a business is changing.„
He added: „Visa says AI isn’t the only reason behind the cuts. But it also says AI is helping „shape the way work gets done. As AI helps employees become more productive, companies may no longer need to hire as many people to achieve the same results. Instead of expanding headcount, they can redirect resources into new products, services and higher-growth opportunities.„
Visa wants to invest more in what it views as growth areas, including its emphasis on affluent customers, cross border activity, business payments, stablecoins and geographic expansion.
Earlier this year, peer Mastercard announced plans to lay off 4% of its global workforce, citing the need to refocus investments in different areas. Fintech firm Block also said in February it would cut nearly half of its workforce, or 4,000 jobs.
