Visa layoffs tied in part to AI as company plans 2,600 job cuts
Visa plans to cut about 2,600 jobs as it shifts spending toward growth areas, with AI cited as one factor in how work is changing.
By Daniel Okafor · Business Editor
3 min read
Visa layoffs tied in part to AI will affect about 2,600 jobs, or roughly 7% of the company’s workforce, CNBC reported Tuesday. The cuts matter because they show how one of the largest companies in payments is using automation and cost control to reshape its operations.
The reductions will be concentrated mostly in Visa’s technology and product operations, according to a company memo whose contents CNBC said it confirmed with a person who has direct knowledge of the matter. CNBC reported that Bloomberg had earlier reported the memo.
Visa had about 34,100 employees at the end of its last fiscal year, according to CNBC. CEO Ryan McInerney is seeking to streamline the company while putting more money behind areas Visa sees as growth opportunities, CNBC reported.
Why is Visa cutting jobs?
McInerney told employees in the memo that Visa needs to keep changing how it works to be better positioned for future opportunities, according to CNBC. He wrote that “AI is also helping to accelerate this evolution and shape the way work gets done at Visa.”
A person with direct knowledge of the changes told CNBC that AI played a significant role in the layoffs, though it was not the only factor. CNBC said the person declined to be named because they were discussing internal changes.
In this context, AI refers to systems that can automate or speed up technical work, including software development. CNBC reported that companies in finance and technology have been using AI for that type of work while also trying to rein in expenses after years of fast hiring.
Where Visa plans to spend more
Visa intends to shift investment toward affluent customers, cross-border activity, business payments, stablecoins and geographic expansion, the person with direct knowledge told CNBC. Those areas are part of the company’s effort to direct resources toward businesses it believes can grow faster.
McInerney also told employees that Visa is entering “a new era in commerce” with momentum in its business, according to CNBC. In the memo, he cited strong financial results and client satisfaction as part of that assessment.
What happens next for Visa?
CNBC reported that Visa is scheduled to release quarterly earnings after the market closes Tuesday. The results will give investors a fresh look at the company’s performance as it cuts jobs and redirects spending.
The company’s planned workforce reduction also adds Visa to the list of major financial and technology businesses changing staffing plans as AI becomes more common in corporate operations, according to CNBC’s reporting. The memo frames the cuts as part of a broader effort to make the company more efficient while funding selected growth areas.
This story draws on original reporting from CNBC.