Visa to lay off 7% of staff as efficiency push deepens
A smartphone with the Visa logo is seen on Jul 15, 2021. (Image: Reuters/Dado Ruvic)
Visa plans to cut 7 per cent of its workforce, or about 2,600 jobs, a company spokesperson said on Tuesday (Jul 28), as the payments processor seeks to become more efficient, about six months after a similar move by its closest peer.
The job cuts will primarily affect technology and product teams.
"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,” CEO Ryan McInerney wrote in a staff memo, excerpts from which were confirmed by the company spokesperson.
Earlier this year, peer Mastercard announced plans to lay off 4 per cent of its global workforce, citing the need to refocus investments in different areas. Fintech firm Block also said in February it would cut nearly half of its workforce, or 4,000 jobs.
McInerney said Visa must keep evolving the way it operates to seize growth opportunities and stay ahead of industry changes, with AI playing a key role in accelerating that shift.
The layoffs underscore how companies are beginning to translate artificial intelligence investments into workforce changes, heightening concerns among workers and economists that the technology could replace jobs even as it drives productivity and profitability.
AI has helped cut repetitive tasks and speed up product development, but it was not the sole factor behind the decision, according to Bloomberg News, which first reported the cuts, citing a person familiar with the company's reasoning.
According to the company's annual report for 2025, Visa had about 34,100 employees in fiscal 2025, up 8 per cent year over year.
"We don’t view this as a material event, as it is just one of the best-run companies in the world tweaking headcount and costs and reallocating money and resources into areas of higher growth and returns," analysts at Evercore ISI said in a note.
IRONCLAD MODEL, RESILIENT SPENDING
The company on Tuesday beat estimates for quarterly profit as steady consumer spending and the World Cup-fueled travel demand boosted payment volumes, signalling resilience amid uncertainty stemming from the conflict in the Middle East.
Payments volume, a gauge of consumer and business spending on the company's network, rose 10 per cent in constant dollars to exceed US$4 trillion for the first time in the company's history, while processed transactions grew 10 per cent.
Visa, which operates a digital payments network across more than 200 countries and territories and is used by billions for everyday transactions, is well positioned to weather any potential economic downturn.
The company's business model is insulated because it depends on transaction volumes rather than credit risk, allowing strength at the top end of the income spectrum to offset softness at the bottom.
"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 said in the memo.
