US payments giant Mastercard has confirmed it plans to cut around 3% of its full-time global workforce – around 1,000 employees – as a result of recently announced “organisational changes”.
In April, the company revealed its plans to realign its organisational structure into three interdependent units: Core Payments, Commercial and New Payment Flows, and Services. CEO Michael Miebach stated at the time that this strategic shift was actioned to “diversify our revenue streams and differentiate our products and solutions”.
A Mastercard spokesperson tells FinTech Futures that the company intends to “redeploy resources into growth areas” as it implements these changes.
“Some of these include opening acceptance in new verticals and continuing to apply technology in ways that help us realise even more of the shift to digital across both consumer and commercial,” the spokesperson adds.
“We’ll also enhance and expand our value-added services, such as in data analytics, fraud and cybersecurity, particularly as we further embed AI into our products and services.
“These actions will impact approximately 3% of our full-time employees globally and a majority of the notifications are expected to be completed in the third quarter. And, as is our normal practice, we will provide support to everyone impacted by these actions,” the spokesperson concludes.
The layoffs follow Mastercard’s Q2 2024 financial results, which saw the company report net revenue of $7 billion, up from $6.3 billion in Q2 2023.
