Visa, which operates the world's largest payments network, plans to cut approximately 7% of its workforce as CEO Ryan McInerney moves to streamline the company and invest in growth areas, according to a memo confirmed by CNBC. The cuts will eliminate roughly 2,600 positions, primarily in technology and product operations, with impacted employees to be contacted starting Tuesday for transition assistance. McInerney stated the restructuring aims to position Visa to lead industry transformation, noting that AI is accelerating operational evolution and reshaping how work gets done at the company. The layoffs reflect a broader trend across financial and technology sectors, where companies increasingly deploy artificial intelligence to automate technical work while controlling costs after years of rapid hiring.
Visa Announces Technology and Operations Cuts
The company plans to eliminate roughly 2,600 positions, mostly in its technology and product operations, according to the memo confirmed by CNBC. The contents of the memo, which was reported earlier by Bloomberg, were verified with a person with direct knowledge of the matter. Visa had about 34,100 employees at the end of its last fiscal year. Impacted employees will start to be contacted on Tuesday for next steps and transition assistance, said the person.
AI Drives Operational Transformation
"To capture the opportunities ahead and best position Visa to lead this transformation, we must continue evolving how we work," McInerney wrote in the memo. "AI is also helping to accelerate this evolution and shape the way work gets done at Visa." While AI played a significant role in the layoffs, it wasn't the sole driver, according to the person with direct knowledge of the matter, who declined to be identified speaking about the changes.
Visa Prioritizes Growth Investment Areas
Visa wants to invest more in what it views as growth areas, including its emphasis on affluent customers, cross border activity, business payments, stablecoins and geographic expansion, said the person with direct knowledge. "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," McInerney wrote, citing good financial results and client satisfaction.
Visa Reports Quarterly Earnings Tuesday
Visa is scheduled to report quarterly earnings after the market closes Tuesday.
FAQ
What percentage of Visa's workforce is being cut?
Visa plans to cut approximately 7% of its workforce, eliminating roughly 2,600 positions primarily in technology and product operations. The company had about 34,100 employees at the end of its last fiscal year.
Why is Visa reducing its workforce?
CEO Ryan McInerney stated the cuts aim to streamline operations and invest in growth areas including affluent customers, cross-border activity, business payments, stablecoins, and geographic expansion. AI is accelerating operational evolution at Visa, though it wasn't the sole driver of the layoffs according to a person with direct knowledge of the matter.
