Visa’s recent decision to cut approximately 7 per cent of its global workforce, translating to around 2,600 jobs, took many employees by surprise, particularly in India. On July 29, staff members woke to emails from human resources notifying them of their employment termination. This swift action coincides with Visa’s strategic shift towards increased utilisation of artificial intelligence across its operations.

The announcement was made on July 28 by Chief Executive Officer Ryan McInerney, who stated that the restructuring was essential for gearing up for a new phase of AI integration. The company intends to move from AI technologies that merely assist employees to those capable of performing designated tasks under human oversight, which McInerney dubbed agentic AI. He suggested that this transformation could open up new growth avenues for the company.

Magnitude of Layoffs and Employee Reactions

While Visa has not confirmed the specific number of employees affected in India, reports indicate that the company has a workforce of over 3,500 in the country, with major centres in Bengaluru, Mumbai, Chennai, and Hyderabad. Between 4 am and 5 am on July 29, employees faced the shock of receiving layoff notifications, with some teams experiencing significant losses. For instance, in a team of 28, around 10 members were laid off, including senior directors and engineering managers.

Employees received severance packages along with notice periods varying from 15 to 30 days. Nevertheless, many had to surrender their company laptops and ID cards shortly after being informed of their job loss, with access to company systems terminated within days. Observers noted that offices, particularly in Bengaluru, became unusually quiet after the announcements, contrasting sharply with the bustling environment of just days prior.

Reactions on social media revealed the emotional impact of the layoffs. Former Visa employee Arnab Das expressed his dismay at losing close colleagues and a manager through social media, depicting the turmoil and uncertainty faced by many staff members. His comments encapsulated the shock that accompanied the layoffs, especially for those who had witnessed strong performance reviews and ownership of crucial products just before their dismissal.

Visa’s AI-Centric Strategy and Broader Industry Trends

The drive towards integrating artificial intelligence into Visa’s operations has reportedly led to a tightening of contractor hiring and reduced spending on external software services. Employees indicated that, despite an initial push for the adoption of AI tools, management later imposed limits on their utilisation. For example, developers in the United States were instructed to incorporate large language models in their tasks but faced monthly quotas regarding the number of AI tokens they could access.

This strategic shift is not exclusive to Visa; the wider payments industry is experiencing similar transitions. Earlier in 2023, Mastercard announced a reduction of around 4 per cent of its global workforce as part of its focus on strategic priorities centred around AI-led growth. Companies across the sector are responding to the evolving technological landscape by aligning their workforce and resources to meet the challenges and opportunities posed by advancements in artificial intelligence.

As Visa continues to reshape its workforce in the context of technological advancement, the repercussions of these layoffs serve as a reminder of the unpredictable nature of the current job market, particularly in technology-driven industries. With a growing emphasis on AI, companies are navigating a landscape that requires both adaptability and foresight in workforce planning, impacting employees across various levels and locations.

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