Global payments company Visa will cut 2,600 jobs, about 7% of its workforce, to respond to a rapidly changing payments industry. The move is seen as a reorganization to focus investment in growth areas as the market is swiftly reshaped by the spread of artificial intelligence (AI) and stablecoins.
On the 28th, according to the Wall Street Journal (WSJ), Bloomberg, and others, Ryan McInerney, Visa chief executive officer (CEO), announced the layoff plan in an internal memo to employees. The cuts will occur across all divisions but are expected to have the greatest impact on the technology and product organizations.
McInerney said, "We must keep evolving how we work to seize future opportunities and ensure Visa remains positioned to lead the industry transition," adding, "The payments industry is at a once-in-a-lifetime inflection point, and AI is accelerating these changes."
He also outlined a policy to boost efficiency across the company and reinvest in businesses with strong growth potential.
Visa unveiled the restructuring plan ahead of its quarterly earnings release. As of the end of the last fiscal year, Visa had about 34,100 employees, more than triple the figure a decade ago.
The company said the layoffs go beyond simple expense cuts and are part of a broader realignment of its business portfolio. Savings will be reinvested in growth areas, including consumer payments, business-to-business (B2B) payments, money movement solutions, cross-border payments, and stablecoin-based services.
McInerney said, "We are entering a new era of commerce based on the investments and strategic choices of the past few years," adding, "We will prepare for the next phase of growth on the back of solid results, customer satisfaction, and employee engagement."
Mastercard, which splits the global card payments market with Visa, also said early this year it would cut about 4% of its workforce, as efficiency drives continue across the payments industry.
Meanwhile, industry watchers say the spread of stablecoins is increasingly likely to bring change to the existing card payments system. Visa has recently expanded its stablecoin payments and settlement program, while Mastercard is accelerating its push into the space, including by announcing the acquisition of stablecoin infrastructure corporations BVNK.