Visa plans to lay off 1,400 employees and contractors by year-end

Visa Inc. is reportedly planning to lay off around 1,400 employees and contractors by the end of 2023 as part of an effort to streamline its international operations. This move, first reported by The Wall Street Journal, involves approximately 5% of the company’s workforce, which currently stands at around 28,800 employees. 

The bulk of these cuts will affect technology roles, accounting for nearly 1,000 positions, with additional reductions anticipated within Visa's merchant sales and global digital partnership departments.

Some layoffs have already taken place, with the remaining affected employees in global digital partnerships expected to stay on until the end of the year. This shift aligns with Visa’s strategy to optimize operational efficiency while still planning to grow its workforce in the coming years.

In response to the report, a Visa spokesperson explained that the company is committed to evolving its operating model to align with ongoing growth and innovation needs, even if that requires the elimination of certain roles.

Visa has been investing in new technology and digital services as the global payments industry continues to grow and demand increased efficiency. This restructuring is part of a larger trend in the payments sector, where companies are reorganizing resources to maintain a competitive edge in an evolving digital landscape. 

The timing of this announcement, just ahead of Visa’s fourth-quarter earnings report, has drawn attention as analysts and investors look to see how these changes may impact the company’s financial performance and strategic direction in 2024.

Visa’s strong market position in the payments sector, along with its ongoing investments in innovation, suggests that these layoffs are a targeted move to ensure that resources are allocated effectively to fuel future growth.