Visa Inc. recently announced the layoffs of about 1,400 employees, including 1,000 people in technology positions, in a move to streamline international operations.
The move, which was announced last Tuesday, raised concerns among investors and company shareholders.
According to a Wall Street Journal report, these job cuts will impact merchant transactions and global digital collaboration, especially related to fintech collaboration.
Some layoffs have already begun, while others will be finalized by the end of the year.
Visa stated that the company is constantly evolving to provide better services to customers and support growth, which may result in the reduction of some positions.
This announcement comes ahead of Visa's fourth quarter earnings presentation, where the financial implications of this restructuring are expected to be discussed in depth.
With more than 141,000 layoffs reported in the tech industry this year, the business environment is increasingly challenging for many companies.
Market reaction to the news was negative, with Visa shares down 0.6% fueling investor concern about the risk implications of these cuts.
In the context of fierce competition in the fintech sector, this move may have a profound effect on Visa to revamp their strategy and review their position in the market.
