Global payments giant Visa (V) plans to lay off nearly 1,400 employees and contractors by the end of 2024, according to the Wall Street Journal. This decision aligns with the company’s broader strategy to streamline its International segment and enhance its competitive position.
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The majority of the layoffs, around 1,000 positions, are expected to occur within Visa’s technology division. The remaining cuts will affect employee roles in two teams: global merchant sales and solutions and global digital partnerships. The latter team is responsible for managing relationships with fintech and technology companies, including Amazon (AMZN).
It’s worth mentioning that Visa’s decision to reduce its workforce was made just before the announcement of its strong fiscal fourth-quarter results. The company reported a 12% year-over-year increase in revenue and a 16.3% jump in earnings. Furthermore, it raised the quarterly dividend by 13% to $0.59 per share.
Visa Joins Financial Sector Layoff Wave
Visa’s layoffs come amidst a broader trend of workforce reductions within the financial sector. In 2024, several major banks and other financial companies laid off employees due to economic uncertainty, reduced deal-making activity, and cost-cutting efforts.
Among the notable companies, Goldman Sachs (GS) was reported to reduce roughly 1,300 to 1,800 positions as part of its annual review process. Further, Citigroup (C) eliminated about 2,000 positions to enhance profitability and streamline its management structure. Moreover, State Street (STT) announced the layoff of 1,500 employees in early 2024.
Is Visa a Good Stock to Buy?
Turning to Wall Street, V has a Strong Buy consensus rating based on 23 Buys and five Holds assigned in the last three months. At $314.09, the average Visa price target implies a 11.43% upside potential. Shares of the company have gained about 8% year-to-date.
