Visa Announces Layoffs Ahead of Earnings as AI and Restructuring Accelerate -- Barrons.com
Dow Jones2026/07/28 19:28By Mackenzie Tatananni
Visa CEO Ryan McInerney announced Tuesday that the payments giant was slashing roughly 7% of its workforce as part of a streamlining effort.
The company plans to cut 2,600 jobs, largely across Visa's technology and product teams, McInerney informed employees in a memo viewed by Barron's. The company is "entering a new era in commerce with a business that has real momentum" following actions it has taken over the past several years, he added.
Shares rose 2% on Tuesday. The benchmark S&P 500 ticked 0.3% higher.
"To capture the opportunities ahead and best position Visa to lead this transformation, we must continue evolving how we work," McInerney wrote, adding that artificial intelligence was helping "shape the way work gets done" at the company.
The technology is likely one factor behind the layoffs, allowing the company to automate tasks while cutting personnel costs. In fact, major tech firms like Intel, Cisco, and Meta Platforms have explicitly linked job cuts in recent months to increased spending on the technology.
But AI likely isn't the sole driver. Visa has been focusing on new initiatives, such as expanding its geographic footprint and entering new verticals like stablecoins -- likely "the choices we have made over the past few years" that McInerney referenced in his letter to staff.
The memo came ahead of Visa's fiscal third-quarter earnings, which are slated for after the closing bell Tuesday. Analysts expect Visa to post adjusted earnings of $3.23 a share and revenue of $11.4 billion, compared with profit of $2.69 a share and revenue of $10.2 billion a year earlier.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
July 28, 2026 15:28 ET (19:28 GMT)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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