Visa's Reported Revamp Includes 2,600 Job Cuts In Workforce Shake-Up Across Payments Firms

According to a Bloomberg report, CEO Ryan McInerney said the restructuring is intended to improve efficiency, with AI playing a central role in the transformation.

• Visa is reportedly planning to eliminate approximately 2,600 jobs, representing about 7% of its global workforce, according to Bloomberg.
• The layoffs are expected to primarily affect Visa's technology and product organizations.
• The firm is scheduled to report earnings after the bell on Tuesday, with Wall Street expecting earnings per share of $3.23 on revenue of $11.4 billion.

Payments giant Visa (V) is reportedly planning to cut 2,600 jobs, roughly 7% of its workforce, as part of a broader restructuring effort at the company.

Visa’s stock edged 0.6% higher at market open. On Stocktwits, retail sentiment around the firm rose to ‘bullish’ from ‘neutral’ territory over the past day, while chatter remained at ‘normal’ levels.

V stock retail sentiment on July 28 as of 9:30 a.m. ET | Source: Stocktwits

According to a Bloomberg report, Visa CEO Ryan McInerney informed employees in a company-wide memo that the reductions 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," McInerney wrote.

Visa Ties Workforce Cuts To AI Strategy

McInerney said artificial intelligence is reshaping how work is performed across the company. "AI is also helping to accelerate this evolution and shape the way work gets done at Visa," he reportedly wrote. "To capture the opportunities ahead and best position Visa to lead this transformation, we must continue evolving how we work."

However, a person familiar with the matter told Bloomberg that AI wasn’t the only driver of Visa’s division. 

The CEO stated that the restructuring reflects strategic investment rather than financial strain. "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," he said, citing strong financial performance, customer satisfaction, employee engagement and continued product innovation.

Visa Joins Growing Wave Of AI-Driven Fintech Layoffs

Visa's workforce reduction follows a broader trend across the fintech sector, where companies have increasingly pointed to AI-driven productivity gains while reducing headcount.

PayPal (PYPL) announced earlier this year that it would eliminate roughly 4,760 positions, or about 20% of its workforce. Block (XYZ) cut nearly 4,000 jobs, close to 40% of its staff, citing AI efficiencies. Meanwhile, Coinbase (COIN) reduced its workforce by roughly 700 employees, representing about 14% of staff.

Visa employed approximately 34,100 people at the end of its last fiscal year. While the reported 2,600 job cuts represent a meaningful restructuring, they remain smaller than many of the reductions announced by other fintech companies this year.

The firm is scheduled to report earnings after the bell on Tuesday. Wall Street is expecting earnings per share of $3.23 on revenue of $11.4 billion, as per Koyfin data. Visa shares have gained more than 3% so far this year.

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