Visa Inc. (NYSE:V) shares gained around 2% on Tuesday after reports that the global payments company intends to reduce its workforce by approximately 7% as part of a broader restructuring programme.
According to a Bloomberg report citing an internal memo from Chief Executive Officer Ryan McInerney, the initiative will affect roughly 2,600 positions, with most of the reductions taking place across the technology and product teams.
Savings to Be Redirected Towards Growth Initiatives
Visa said the restructuring is designed to reallocate resources towards key strategic priorities rather than reduce investment in the business.
The company plans to reinvest the savings into areas including commercial payments, cross-border transactions, stablecoin infrastructure and business-to-business payment solutions.
The move follows a period of significant expansion that saw Visa’s global workforce grow to approximately 34,100 employees over the past decade.
Company Says AI Is Not the Main Driver
While McInerney noted in the internal memo that artificial intelligence is “accelerating the evolution” of work across the organisation, people familiar with the matter indicated that AI is not the primary reason behind the job reductions.
Instead, the restructuring reflects wider cost-control measures across the financial technology industry, with established companies seeking greater efficiency after several years of rapid hiring.
Visa Takes More Measured Approach Than Some Rivals
Visa’s plans contrast with those of Block Inc. (NYSE:XYZ), which recently announced a much larger reduction in its workforce.
Block cut almost 40% of its employees, or around 4,000 jobs, with Chief Executive Officer Jack Dorsey attributing the move directly to productivity gains from artificial intelligence. Dorsey said that “intelligence tools” now enable significantly smaller teams to achieve the work previously carried out by much larger organisations.
While Block positioned its restructuring around an AI-first operating model, Visa’s strategy appears focused on improving operational efficiency and redirecting capital towards next-generation payment technologies rather than replacing employees with artificial intelligence.
Visa is scheduled to release its latest quarterly earnings after the close of trading.
Visa stock price
