MasterCard The company reportedly plans to lay off about 1,000 employees, or 3% of its global workforce, as part of a restructuring announced earlier this year.
Most employees affected by the move are expected to be notified by the end of the quarter, according to Reuters. Reported The announcement was made on Friday (August 16th), citing a Mastercard spokesperson.
“Once these changes are implemented, we will reallocate resources to growth areas,” a spokesperson said, according to the report.
Chief Financial Officer, Mastercard Sachin Mehra The company reportedly announced in July that it would record a one-time restructuring charge in the quarter ending Sept. 30.
The company announced the executive restructuring on April 9. In a press release outlining the plans, Mastercard said the realigned organizational structure is centered around three areas: core payments, commercial and new payment flows, and services, and will help accelerate growth and deliver value to shareholders.
“These changes strengthen our strategy and competitive advantage, driving long-term growth, diversifying our revenue streams and differentiating our products and solutions,” Mastercard’s CEO said. Michael Miebach “This will enable our teams to work faster and deliver more value to our partners and customers,” the company said in a release.
In its latest earnings report, released on July 31, Mastercard reported strong second-quarter results, with net revenue up 14% year over year to $6.3 billion.
The macroeconomic environment “remains complex,” Miebach said on the earnings conference call.
“A strong labor market and wage growth continue to support strength in consumer spending,” Miebach said. “There are some signs of moderating labor market growth, but this comes off very high job creation levels. Inflation and interest rates also remain a focus of attention. Inflation is subdued, but to different degrees in the card-issuing and non-card-issuing sectors.”
Mastercard has also been rolling out new products and partnerships. Since early August, the company has launched a crypto-to-fiat exchange card with a Web3/blockchain platform. Metamask Cryptocurrency payment company Burns; New features added to Open Banking for lending programs with employment and income verification Argyle; Partnering with UK neobank Ampere This is to allow the company’s customers to use card-to-card payments.
