Visa to cut 7% of workforce, about 2,600 jobs

Visa plans to eliminate about 2,600 jobs, or roughly 7% of its workforce, mostly in technology and product operations.

Visa confirms the layoffs in an internal memo. The payments company will begin contacting impacted employees on Tuesday for next steps and transition assistance. CEO Ryan McInerney outlined the changes in a memo that CNBC confirmed with a person with direct knowledge of the matter.

The memo, first reported by Bloomberg, states that the reductions will help the company capture opportunities ahead and position it to lead in a transforming industry.

AI is cited as a factor reshaping work at Visa. McInerney wrote that AI is helping to accelerate evolution and shape the way work gets done at Visa. A person with direct knowledge told CNBC that AI played a significant role in the layoffs but was not the sole driver.

The cuts come as companies across financial and technology sectors use artificial intelligence to automate technical work such as software development. Visa had about 34,100 employees at the end of its last fiscal year.

The company will reinvest savings into targeted growth areas. Visa intends to focus more on affluent customers, cross-border payments, business remittances, stablecoins and geographic expansion. McInerney wrote that recent choices have positioned the business with real momentum, citing good financial results and client satisfaction.

Quarterly earnings are due after market close on the same day layoffs begin. Visa is scheduled to report its results Tuesday after the market closes. The efficiency push aims to streamline operations while directing resources toward higher-growth segments.