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Visa plans investments after cutting 7% of its workforce
Visa said its fiscal third-quarter performance on July 28 helped support the plan, including a 34% year-over-year jump in value-added services revenue to $3.8 billion and updated full-year net revenue and EPS outlooks.
Visa plans to lay off about 2,600 employees, cutting roughly 7% of its workforce, and intends to reinvest some of the savings into growth areas including affluent customers, cross-border activity, business payments, stablecoins, and geographic expansion, according to an article citing CNBC.
The layoffs come as Visa posted solid fiscal third-quarter results on July 28. Last quarter, value-added services revenue rose 34.0% year-over-year on a constant currency basis to $3.8 billion, and net revenue increased 14.0% year-over-year to $11.6 billion, Visa said. Payments volume also grew 10.0% year-over-year excluding currency fluctuations, while non-GAAP EPS rose 11.0% year-over-year to $3.32.
Visa said the workforce reduction is also expected to support profit margins and the bottom line. Management now expects full-year net revenue growth in the low end of the low teens, versus a prior forecast for a low-double-digit to low-teen range, and it expects full-year EPS growth in the low end of mid-teens, per CFO Chris Suh on the earnings call.