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Elevate Magazine
August 22, 2024

Report: Mastercard to Implement 3% Layoffs Across Global Staff

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Mastercard is set to reduce its global workforce by three per cent, amounting to approximately 1,000 job cuts, according to Bloomberg. This strategic move aims to streamline operations and accelerate future growth.

In April, Mastercard announced a significant restructuring, dividing its operations into three main units: Commercial and New Payment Flows, Services, and Core Payments. CEO Michael Miebach highlighted that this reorganisation is designed to diversify revenue streams and differentiate the company’s offerings.

A spokesperson for Mastercard layoffs are part of a broader strategy to reorganise and improve the company’s long-term prospects. “We’re undertaking organisational changes to realign our regions and businesses, which will help us accelerate growth and invest in new opportunities,” they explained.

The planned job cuts, which are expected to be completed by September 30, come amid a rise in operating expenses, which increased by 12% due to higher general and administrative costs and litigation expenses. Mastercard is now focusing on reallocating resources to drive growth, particularly in technology and value-added services such as cybersecurity, fraud prevention, and data analytics.

Mastercard’s decision to reduce its workforce follows similar moves by major firms including Citigroup, Tesla, and Intel this year. Although the specific departments affected have not been detailed, the company has confirmed it will offer support to those impacted by the changes.

As of December 2023, Mastercard employed around 33,400 people globally, with about 67% based outside the US across more than 90 countries. Despite a strong performance with an 11% increase in net revenue to $7 billion in the second quarter, the company has faced rising operating expenses and has allocated $190 million for restructuring costs in the third quarter.