Visa to Slash 7 Percent of Workforce

Visa will eliminate about 2,600 jobs, or 7 percent of its workforce, the payment processor confirmed to The Epoch Times on July 28.The cuts will fall largely on Visa’s technology and product teams, with the company redirecting the savings toward growth areas such as business-to-business services, commercial payments, and its stablecoin infrastructure.Planned layoffs are rare for the credit card giant, as it has expanded its payroll drastically over the past 10 years.More details should be provided when the company reports its fiscal third-quarter earnings after the closing bell on July 28.The company beat analysts’ revenue expectations last quarter, climbing more than 17 percent to $11.23 billion.Like others in the payment processing space, Visa has been successfully operating amid various global economic headwinds, says Eric Clark, portfolio manager and CIO at Accuvest Advisors.“Visa continued to execute exceptionally well and delivered one of its strongest quarters in recent years,” Clark said in an emailed note to The Epoch Times.“Whatever technological disruption emerges, these companies are typically among the first to incorporate those capabilities into their networks. The market often reacts to price action rather than fundamentals.”Wall Street analysts are upbeat about Visa’s prospects. They maintain an overwhelming “Buy” rating and project a 12-month upside of 10 percent for the stock.Shares of Visa rose more than 1 percent on July 28. The stock has climbed almost 5 percent this year.Its main competitors—Mastercard and American Express—were also in the green.Latest in LayoffsWhile layoffs have been low in the United States this year—initial jobless claims fell to their lowest level since 1969 this past week—scores of major companies have been trimming headcount, including Amazon, Coinbase, Meta Platforms, Oracle, and Target.Buzzfeed was one of the latest well-known brands to lay off workers, terminating 180 employees, or 35 percent of the company, on July 27.Still, in the first six months of 2026, job-cut announcements have declined by 40 percent compared with the same period a year ago. Year-to-date, there have been nearly 444,000 planned layoffs, according to global outplacement firm Challenger, Gray & Christmas.In the coming years, it could be a case of rebalancing in the labor market.Of the current crop of planned job cuts, most are centered in technology, with artificial intelligence (AI) playing a significant role.“Tech remains the epicenter of this year’s cuts. AI is the dominant force as companies are restructuring around it, automating roles, and reallocating budgets toward new capabilities. The sector is being reshaped in real time,” Andy Challenger, the firm’s chief revenue officer, said in a statement.Overall demand for labor has also strengthened at a moderate pace.The U.S. labor market continues to expand at a moderate pace. The unemployment rate is around 4 percent, and it is expected to remain low for the remainder of the year. This year’s job growth is outpacing last year’s numbers.A store window at a restaurant in St. George, Utah, on Sept. 15, 2025. Madalina Kilroy/The Epoch TimesVacancies remain at about 7 million, and job postings on Indeed have edged up, fueled by software development and data centers, according to Indeed data.“Job postings for roles related to the data center build-out are surging as AI infrastructure needs increase demand for untraditional tech jobs, like installation and maintenance workers who can bring specialized electrical knowledge and breathe life into new data centers,” economists at Indeed Hiring Labor said in a July 23 report.Following a springtime acceleration, hiring momentum has stalled so far this summer.In the four weeks ending July 11, private employers added an average of 15,000 jobs per week, slowing for the fifth consecutive week, according to payroll processor ADP. Since peaking in mid-May, hiring has been steadily declining.