(Bloomberg) -- Visa Inc. shares reversed earlier gains after a report that the company plans to eliminate 1,400 jobs and streamline its international business.
About 1,000 of the reductions are expected to affect technology jobs, and most of the rest will involve merchant sales and global digital partnership roles, the Wall Street Journal reported Tuesday, citing people familiar with the matter. Some of the cuts will hit contractors on engineering teams, according to the report.
“We continuously evolve our operating model to better serve clients and accelerate innovation and growth, which can lead to the elimination of some roles,” a spokesperson for the company said in an emailed statement, adding that San Francisco-based Visa expects to increase the number of employees this year and in 2025.
Shares of the company, which has roughly 30,000 employees worldwide, fell 0.5% at 3:36 p.m. in New York after climbing as much as 0.5% earlier in the session.
Visa is set to report fiscal fourth-quarter results after US markets close Tuesday.
In July, the company reported fiscal third-quarter revenue that fell short of analysts’ estimates, a rarity for the world’s biggest payments network. Earlier this year, a federal judge rejected a $30 billion settlement that Visa and rival Mastercard Inc. had reached with US merchants in an attempt to resolve two decades of litigation over credit-card swipe fees.
Last month, the US Department of Justice sued Visa, accusing the company of monopolizing the US debit card market in the Biden administration’s first major antitrust case in the financial-services industry.
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