Mastercard reportedly plans to lay off 3% of its global workforce — about 1,000 people — as part of a reorganization it announced earlier this year.
Most of the employees who will be affected by the move will be notified by the end of the current quarter, Reuters reported Friday (Aug. 16), citing a Mastercard spokesperson.
“As these changes are made, we plan to redeploy resources into growth areas,” the spokesperson said, according to the report.
Mastercard Chief Financial Officer Sachin Mehra said in July that the company would record a one-time restructuring charge in the quarter ending Sept. 30, per the report.
The company announced an executive restructuring on April 9. In a press release outlining its plans, Mastercard said this realignment of its organizational structure centered on three areas — Core Payments, Commercial & New Payment Flows, and Services — and would help accelerate growth and deliver value to shareholders.
“These changes will reinforce our strategy and competitive advantage to drive long-term growth, diversify our revenue streams and differentiate our products and solutions,” Mastercard CEO Michael Miebach said in the release. “Our teams will be able to execute faster and deliver more value to our partners and customers.”
During the company’s most recent earnings report, which was released July 31, Mastercard said it had strong performance in the second quarter, with net revenue increasing by 14% year-over-year to $6.3 billion.
Miebach said during the earnings call that the macroeconomic environment “remains mixed.”
“Strength in consumer spending continues to be supported by a solid labor market and wage growth,” Miebach said. “While there are some signs of labor market growth moderating, this is off very strong levels of job creation. Also, inflation and interest rates remain in focus. We’ve seen inflation cool, but to varying degrees across carded and non-carded categories.”
Mastercard has also been rolling out new products and partnerships. Since the beginning of August, the company launched a crypto-to-fiat card with Web3/blockchain platform MetaMask and cryptocurrency payments firm Baanx; added new features to its open banking for lending program powered by employment/income verifier Argyle; and teamed up with U.K. neobank Ampere to allow that company’s customers to access card-to-card payments.
