NEW YORK, July 28, 2026, 13:59 EDT
- Visa stock rose 1.8% after the company said it would move ahead with plans to cut around 2,600 jobs.
- The decrease corresponds to 104% of Visa’s net increase in employees in fiscal 2025.
- Initial estimates indicate the 7% reduction amounts to $487 million in yearly personnel costs.
Shares of Visa NYSE:V were up 1.8% at $369.06 as of 1:43 p.m. EDT, during active U.S. trading hours. The company intends to cut around 2,600 positions, representing 7% of its workforce.
The majority of job cuts will impact technology and product departments, while some positions will also be eliminated across other areas, the employee memo stated.
Scale is the critical focus for investors. In fiscal 2025, Visa expanded its workforce by 2,500, bringing the total to 34,100 employees. The latest reductions surpass the entire yearly increase.
Visa’s most recent yearly data highlights a rapid rise in staffing expenses.
| Visa workforce and cost marker | Fiscal 2024 | Fiscal 2025 | Announced action or estimate |
|---|---|---|---|
| Employees | 31,600 | 34,100 | 2,600 job reductions planned |
| Annual employee change | — | +2,500 | Reduction represents 104% of that growth |
| Personnel expense | $6.264 billion | $6.961 billion | Roughly $487 million gross |
| Non-GAAP operating expense | $11.609 billion | $12.906 billion | Gross figure is 3.8% |
*Initial estimate, not official company forecast. The calculation uses the mentioned 7% decrease spread evenly across fiscal 2025 personnel costs. It does not include severance costs, new hires, departures, or any reinvestment plans. Visa has not disclosed an updated headcount figure, making it impossible to confirm a post-reduction total.
Visa reported an 11% increase in personnel expense over the past year, citing greater spending on staffing, compensation, and severance. Adjusted operating expense likewise climbed 11%.
Net revenue climbed 17% in the March quarter, reaching $11.23 billion. Adjusted operating expenses increased by the same 17%, indicating little additional operating leverage.
Visa CEO Ryan McInerney stated the company aims to “drive efficiency” and channel savings into reinvestment. He noted artificial intelligence is transforming operations. According to Bloomberg, AI played a major role, though it was not the only reason. Reuters
Visa made extensive use of AI, with close to 26,000 staff members utilising the company’s internal assistant as of September 2025. Employees initiated upwards of 261,000 chats powered by AI.
The action comes after Mastercard NYSE:MA, Visa’s main network competitor, revealed plans earlier this year to reduce its headcount by 4%. Visa’s intended workforce reduction outpaces that by three percentage points.
Mastercard stock advanced roughly 1.8% in afternoon trading. A broad S&P 500 index fund added approximately 0.2%. The simultaneous movements indicate some backing across sectors, not solely a reaction to layoffs.
Visa will announce fiscal third-quarter earnings following Tuesday’s market close. Analysts project adjusted earnings at $3.23 per share, with revenue seen at $11.4 billion, Barron’s reported.
The projections suggest earnings will rise roughly 20% from the prior year. Revenue is anticipated to increase by around 12%. Investors are looking to see if updated cost guidance will broaden that differential.
Analysts at Evercore’s NYSE:EVR ISI research division described the development as “not a material event.” They regarded it as a pivot to areas promising greater growth and higher returns. Reuters
Risks persist. Reducing staff in product and technology roles may delay launches or undermine controls. Severance costs and reinvestment could take up much of the projected gross savings.
The 5 p.m. EDT call with management may provide clarity on the timing, charges and reinvestment. These factors will shape the enduring margin impact.
