Core Highlights
Visa plans to eliminate approximately 2,600 positions, with the majority of cuts concentrated in technology and product operations. This accounts for about 7% of the total workforce.
Chief Executive Ryan McInerney stated that artificial intelligence is "reshaping how Visa works"; sources familiar with the matter indicated that AI is a significant driver of the cuts, but not the sole cause.
Visa intends to redirect funds into high-growth areas, focusing on premium clients, cross-border payments, business-to-business remittances, and overseas regional expansion. The company is set to report quarterly earnings after the US market close on Tuesday.
Stock Performance
Visa (ticker: V): Rose $3.28, or 0.90%.
On April 1, 2015, in San Francisco, California, Visa President Ryan McInerney delivers a keynote address at the Transact 15 industry conference.
An internal memo was obtained and confirmed, revealing that the operator of the world's largest payment network is initiating layoffs. CEO Ryan McInerney aims to streamline the organizational structure and allocate more resources to growth businesses, prompting plans to cut 7% of the workforce.
The memo indicates that the total layoffs will affect approximately 2,600 people, with job losses concentrated in technology and product operations. Bloomberg first disclosed the document, and its entire contents were verified by sources familiar with the matter.
Sources said the company began notifying affected employees starting Tuesday, informing them of next steps and providing transition support for their departure.
McInerney wrote in the internal document: "To seize future opportunities and keep Visa at the forefront of industry change, we must continuously optimize how we work. Artificial intelligence is also accelerating this transformation, reshaping the entire operational model of the company."
The layoffs at Visa are a microcosm of a broader industry trend where the financial and technology sectors are increasingly using AI to automate technical work like software development. After years of aggressive hiring, many large companies are now tightening cost controls. Visa had approximately 34,100 employees at the end of the last fiscal year.
A source, who requested anonymity, stated that AI is a major catalyst for the layoffs, but not the sole determining factor.
The source explained that Visa plans to expand into promising areas: deepening focus on high-net-worth clients, cross-border transactions, business-to-business payments, and stablecoin business, while also pursuing market expansion in multiple global regions.
Combining strong financial data with customer satisfaction metrics, McInerney said: "Thanks to our strategic investments over the past few years, we are entering a new era of commerce, and the company has ample growth momentum."
Visa is scheduled to disclose its latest quarterly earnings after the US market closes on Tuesday.
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