Visa cuts 2,600 jobs
What's the story
Visa, the world's largest payments network, is planning to lay off nearly 7% of its workforce. The decision comes from CEO Ryan McInerney's strategy to streamline the company and invest more in growth areas. The layoffs will affect around 2,600 employees, mostly in technology and product operations.
Tech impact
AI's role in layoffs
The layoffs come as financial and tech companies increasingly use artificial intelligence (AI) to automate technical work like software development.
This is part of a broader cost-cutting strategy after years of aggressive hiring.
At the end of its last fiscal year, Visa employed some 34,100 people.
While AI played a major role in the layoffs, it wasn't the only factor driving this decision.
Strategic shift
Visa's growth areas
Despite the layoffs, Visa plans to invest more in what it sees as growth areas. These include a focus on wealthy consumers, cross-border activity, business payments, stablecoins, and geographic expansion.
"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.
Corporate evolution
McInerney on AI and Visa's evolution
McInerney emphasized the company's commitment to driving efficiency across the company. He said this is essential for reinvesting in high-potential opportunities.
"To capture the opportunities ahead and best position Visa to lead this transformation, we must continue evolving how we work," he wrote.
The CEO also noted that AI is helping accelerate this evolution at Visa by shaping how work gets done.