Visa Announces Major Job Cuts as Part of Broader Restructuring Effort

Global payments company Visa will eliminate about 2,600 jobs, or roughly 7% of its workforce, as part of a broader effort to streamline operations and invest in faster-growing parts of its business, reported Bloomberg. According to a staff memo, Visa chief executive officer (CEO) Ryan McInerney told employees the company needed to change how it operates to stay competitive and support future growth, reported Bloomberg. The job reductions will mainly affect employees working in the company’s technology and product divisions. Visa stated the restructuring is part of a long-term strategy to simplify operations and direct more resources toward businesses with stronger growth potential. In his message to employees, McInerney said the company wanted to improve efficiency while continuing to invest in areas expected to drive future revenue. “I have deep conviction that we are doing what is right for Visa, our clients and our partners as we continue to focus on driving efficiency across the company in order to reinvest in our highest potential opportunities,” he said. Visa employed about 34,100 people at the end of its last financial year, reported Bloomberg. The latest cuts represent about 7% of its global workforce. The company plans to increase investment in businesses such as consumer payments, commercial payment solutions, money movement services, stablecoin-based payment products, cross-border transactions and business-to-business payment services, reported Bloomberg. Visa stated these areas will play a bigger role as digital payments continue to expand globally. Artificial intelligence formed part of the company’s restructuring strategy, although it was not the only reason behind the job cuts. McInerney told employees that AI is changing the way work is completed across Visa and helping teams build products more quickly, reported Bloomberg. “To capture the opportunities ahead and best position Visa to lead this transformation, we must continue evolving how we work,” he said. “AI is also helping to accelerate this evolution and shape the way work gets done at Visa,” he added, as reported by Bloomberg. AI supports automation of repetitive tasks and speeds up product development, reported Bloomberg quoting a person familiar with the company’s decision. However, the report stated that the restructuring was also driven by Visa’s broader business priorities rather than AI alone. McInerney said Visa believes it has built strong momentum over the past several years. “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,” he said. “We see this in our continued strong financial results, client satisfaction, employee engagement, and breakthrough innovation as we build and ship products better and faster than ever before,” as reported by Bloomberg. Visa’s workforce has expanded significantly over the last 10 years, growing from fewer than 11,000 employees to more than 34,000. Several major fintech firms, including PayPal and Block, have also announced workforce reductions in recent months.