In a significant move towards restructuring its operations, Visa has announced plans to lay off 1,400 employees and contractors, with around 1,000 of those roles being in technology. This decision comes as the company aims to streamline its international business, as reported by The Wall Street Journal on October 29.

The layoffs will not only affect technology positions but will also target roles in merchant sales and global digital partnerships, areas that are integral to its engagements with fintech firms and other tech companies.

A Visa spokesperson explained that the company continually adapts to better serve its clients and foster growth, which can sometimes lead to the elimination of certain roles. They assured that while some positions would be cut, Visa anticipates a gradual increase in its overall workforce in the coming years.

These layoffs are part of a wave of job cuts observed in the financial sector. In the just-concluded year, the banking industry saw over 60,000 job reductions, primarily due to investment banks suffering from two consecutive years of declining fees, amid a downturn in mergers, acquisitions, and public offerings. This rise in layoffs marks one of the industry's worst years since the financial crisis of 2007-2008, which saw banks eliminate around 140,000 positions.

Notably, the largest single layoffs in 2023 included 13,000 jobs at the newly formed bank from UBS's acquisition of Credit Suisse and 12,000 at Wells Fargo. The trend has also extended to the tech industry, where, according to layoffs.fyi, over 141,000 jobs have been cut in 2023 across nearly 500 tech companies, illustrating a broader pattern of workforce reductions across multiple sectors.

As Visa prepares to discuss its fourth-quarter and full-year earnings for 2024, this announcement highlights the challenging environment within the tech and finance industries, raising concerns and questions about future job security and market stability.