Visa has announced significant layoffs in the Bay Area, even after reporting an impressive $19.7 billion profit, raising concerns about public confidence in corporate America.
Located in San Francisco Visa, a leading player in the payment processing industry, has started to reduce its workforce by laying off hundreds of employees in the Bay Area, following a recent monopoly lawsuit filed by the Justice Department.
Last Thursday, a WARN document was issued announcing the cuts, a standard procedure for mass layoffs.
As per the announcement, 192 job cuts are planned in San Mateo, along with 10 more positions being removed at Visa’s headquarters in Mission Bay.
The recent layoffs contribute to the 91 that were announced in early November, resulting in a cumulative total of more than 290 job losses.
The recent job cuts predominantly target upper management, with the latest wave affecting two senior vice presidents, five vice presidents, 29 senior directors, and 23 directors.
In the face of these job cuts, Visa continues to achieve unprecedented financial success. For the fiscal year ending in September 2024, the company announced an impressive profit of $19.7 billion, generated from $35.9 billion in revenue.
Visa’s impressive financial performance has resulted in an almost 20% rise in its market capitalization since the start of the year, elevating its valuation to $603 billion and reinforcing its status as one of the largest publicly traded companies in the U.S.