The payments company said the cuts will fall on technology and product teams as CEO Ryan McInerney pushes to make the firm more efficient
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Visa $V is eliminating roughly 2,600 jobs, or about 7% of its total workforce, as Chief Executive Officer Ryan McInerney moves to make the payments company more competitive. The cuts will fall on technology and product teams, according to Bloomberg, which reviewed a staff memo McInerney sent Tuesday.
"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," McInerney wrote in the memo.
Visa had roughly 34,100 employees at the end of its most recent fiscal year. Freed-up capital is expected to flow back into areas such as consumer payments, commercial and money-movement solutions, and value-added services — a category that spans stablecoin, cross-border, and business-to-business products — according to Bloomberg, which cited a person familiar with the company's reasoning.
Artificial intelligence is playing a role in the transition — streamlining routine tasks and quickening the pace of product development — though it was not the sole reason the company moved forward with the reductions. "AI is also helping to accelerate this evolution and shape the way work gets done at Visa," McInerney wrote.
Visa stock rose about 2.1% in premarket trading Tuesday. The company is scheduled to report quarterly results after U.S. markets close Tuesday.
The layoffs arrive as other payments and fintech companies have also reduced headcount. Earlier this year, Mastercard $MA announced plans to cut 4% of its global workforce, according to Reuters. Block $SQ announced in February that it planned to shed roughly 4,000 positions, representing close to half of its total headcount. PayPal $PYPL Holdings has also announced cuts.
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