Visa layoffs tied to AI push will cut about 2,600 jobs

Visa layoffs tied to AI are set to remove about 2,600 jobs, or roughly 7% of the payments company’s workforce, according to a memo confirmed by CNBC. For investors, the cuts show how one of the biggest names in global payments is trying to protect efficiency while putting more money behind areas it sees as faster-growing.

The planned reductions will fall mostly in Visa’s technology and product operations, CNBC reported, citing the memo and a person with direct knowledge of the matter. Bloomberg reported the memo earlier, according to CNBC.

Visa ran about 34,100 employees at the end of its most recent fiscal year, CNBC reported. The company operates the world’s largest payments network, meaning its systems help move card and digital payments between consumers, merchants, banks and other financial firms.

Why is Visa cutting jobs?

CEO Ryan McInerney told employees in the memo that Visa needs to keep changing how it works to take advantage of opportunities ahead. He wrote that artificial intelligence is helping “accelerate this evolution and shape the way work gets done at Visa,” according to CNBC.

Artificial intelligence, or AI, refers to software that can perform tasks that usually require human judgment or pattern recognition, such as writing code, analyzing data or automating support work. In a corporate setting, that can let companies handle some work with fewer people, while shifting remaining staff and spending toward higher-priority projects.

A person with direct knowledge of Visa’s plans told CNBC that AI was a significant factor in the job cuts, though it was not the only reason. The person was not named because they were discussing internal changes, CNBC reported.

CNBC also tied the move to a wider pattern across finance and technology, where companies are using AI to automate technical tasks such as software development while also trying to control costs after several years of fast hiring.

Where Visa wants to spend next

Visa plans to redirect resources toward areas it views as growth opportunities, according to the person who spoke with CNBC. Those areas include affluent customers, cross-border activity, business payments, stablecoins and expansion into more geographies.

Cross-border payments are transactions that move money between countries, a business that can benefit when consumers travel, shop internationally or companies pay suppliers abroad. Stablecoins are digital tokens designed to hold a steady value, often by being linked to a currency such as the U.S. dollar.

McInerney’s memo said Visa is entering “a new era in commerce” after choices made over the past several years, CNBC reported. He pointed to strong financial results and client satisfaction as part of the company’s current momentum.

The timing puts the restructuring in front of investors just as Visa prepares to release quarterly earnings after Tuesday’s market close. That report will give shareholders a fresh look at growth, margins and spending plans while the company reshapes parts of its workforce.

CNBC’s market data showed Visa shares trading higher by 0.79% at the time referenced in its report.

This story draws on original reporting from CNBC.