Payments processing giant Visa is set to reduce its global workforce by approximately 2,600 positions, accounting for 7% of its total employees. The decision, reported on Tuesday, comes as the company aims to enhance efficiency and streamline its operations amidst a challenging industry landscape.
Technology and Product Teams Most Affected
According to an internal staff memo cited by Bloomberg News, the job cuts will largely concentrate on Visa’s technology and product departments. While artificial intelligence (AI) is playing a role in automating repetitive tasks and accelerating product development, sources familiar with the company's reasoning indicate that AI is not the sole driver behind this significant workforce reduction.
Industry-Wide Workforce Adjustments
Visa's announcement follows similar moves by other major players in the payments and fintech sectors. Earlier this year, rival Mastercard disclosed plans to cut 4% of its global workforce to redirect investments towards new growth areas. Additionally, fintech firm Block announced in February that it would reduce its staff by nearly half, affecting around 4,000 jobs.
The company is scheduled to release its quarterly financial results after the market closes on Tuesday. Following the news of the job cuts, Visa shares saw a gain of 2.2% in premarket trading.