Visa to part ways with 2,600 employees as part of restructuring
US-based payment technology company Visa will reduce its workforce by approximately 7 percent in line with its efficiency and reinvestment goals.
US-based payment technology company Visa is preparing to lay off approximately 2,600 employees as part of a restructuring program. It was stated that the cuts correspond to about 7 percent of the company's total workforce.
According to a note sent to employees by Visa CEO Ryan McInerney, the layoffs will primarily be implemented in the technology and product teams. McInerney stated that the company is focused on increasing efficiency and directing its resources to areas with the highest potential.
The company had approximately 34,100 employees at the end of the last fiscal year. While Visa's employment has more than tripled in the last 10 years, other companies in the financial technology sector that have taken similar steps recently include PayPal Holdings and Block.
ARTIFICIAL INTELLIGENCE AND NEW INVESTMENT AREAS
McInerney stated that Visa needs to improve its way of working to lead the transformation in the commerce sector. Noting that artificial intelligence is accelerating this process, McInerney conveyed that technology is being used to reduce repetitive tasks and speed up product development processes.
According to a person familiar with the decision-making process, artificial intelligence was not the sole reason for the layoff decision. It is stated that with the restructuring, the company aims to allocate more resources to business lines where it sees growth potential while reducing capacity in some areas.
Areas where Visa plans to reinvest include consumer payments, commercial payment and money transfer solutions, and value-added services. Stablecoins, cross-border payments, and business-to-business payment services are also among the topics the company will focus on.
On the market side, Visa shares rose 2.1 percent to $370 in pre-market trading on the day the decision came to light. As of yesterday, the company's shares had gained 3.4 percent year-to-date, while the S&P 500 Financials Index rose 3.8 percent in the same period.
News Source: 12punto
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