Visa, the global payments giant, has announced plans to lay off approximately 1,400 employees and contractors by the end of the year.
This decision is part of a broader strategy to streamline its international business operations and enhance its competitive position.
Majority of Cuts in Visa Technology Division
According to reports from The Wall Street Journal, about 1,000 of the job cuts will come from Visa’s technology division.
The remaining layoffs will focus on roles within the company’s merchant sales and global digital partnership teams.
Some of the layoffs have already taken place, with the company planning to keep its workers in the global digital partnership teams employed through the end of the year.
A Visa spokesperson told Reuters that the company continuously evolves its operational model to support growth, which can lead to the elimination of some roles.
Despite the layoffs, Visa expects to grow the number of employees at the company for the foreseeable future.
As of the end of fiscal year 2023, Visa employed 28,800 individuals.
Financial Performance and Industry Trends
Visa’s decision to reduce its workforce comes just before the announcement of its strong fiscal fourth-quarter results.
The company reported a 12% year-over-year increase in revenue and a 16.3% jump in earnings.
Additionally, Visa raised its quarterly dividend by 13% to $0.59 per share.
The layoffs are part of a broader trend within the financial sector, with several major banks and financial companies also reducing their workforce due to economic uncertainty and cost-cutting efforts.
Visa’s move to streamline its operations and focus on growth is a strategic decision aimed at maintaining its competitive edge in the global payments industry.
While the layoffs are a difficult decision, the company remains optimistic about its future growth and plans to continue hiring to support its expanding business.
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