Visa Announces Layoffs Amid Share Price Surge
Visa Inc (V) announced plans to lay off approximately 7% of its global workforce, or about 2,600 roles, primarily in technology and product-focused departments. The move is intended to streamline operations by leveraging AI for automation, allowing the company to reinvest resources into growth areas such as cross-border transactions and B2B payment solutions. Despite job cuts, Visa's stock has risen sharply on Tuesday, up about 25% from its year-to-date low. The layoffs coincide with Visa’s upcoming Q3 earnings report after market close. Analysts expect revenue of $11.35 billion and EPS of $3.23 for the quarter, representing an 8.4% increase in EPS compared to last year. Options pricing suggests a potential post-earnings price rise above $380 per share. Visa currently trades at nearly 16x sales versus Mastercard’s (MA) 14.5x and has received a 'Strong Buy' consensus rating from analysts, with an average target of $404 over the next year.
Tickers: $MA
Topics: layoffs operational efficiency stock price reaction Visa