Visa Announces Layoffs, Strong Earnings Signal Strategic Shift
Visa Inc (V) is cutting approximately 7% of its workforce—around 2,600 employees—and plans to reinvest the savings into high-growth areas such as affluent customers and cross-border payments. The move aligns with advancements in AI that are enabling automation within operations. In Q3 fiscal results released on July 28, Visa reported a strong performance: net revenue rose 14% year-over-year (YOY) to $11.6 billion, while non-GAAP earnings per share increased by 11% YOY to $3.32. Value-added services saw particularly robust growth of 34%, reaching $3.8 billion. Analysts remain optimistic about Visa's stock despite a forward P/E ratio of 27.9, which is higher than the sector average. The company currently holds a 'Strong Buy' consensus rating from Wall Street.
Topics: earnings investments layoffs