Visa plans 7% workforce reduction to boost efficiency

Visa is preparing to lay off about 7% of its global workforce, a move that will affect approximately 2,600 employees. The payments processor aims to enhance efficiency within the challenging financial industry landscape.

The majority of the job cuts are expected to occur within Visa's technology and product development departments. While artificial intelligence has contributed to streamlining repetitive tasks and accelerating product development, it is not the sole driver behind this decision, according to a person familiar with the company's reasoning.

Visa has not yet responded to requests for comment. The company is scheduled to release its quarterly earnings report later on Tuesday. This decision by Visa comes shortly after its peer, Mastercard, announced plans to reduce its global workforce by 4% earlier this year to refocus investments. Additionally, fintech firm Block stated in February that it would cut nearly half of its employees, totaling 4,000 jobs.

Despite the planned layoffs, Visa's shares saw a positive reaction in premarket trading, rising by 2.2%.