Bad credit | Mastercard cuts 3% of jobs despite stellar Q2 performance

Global payments giant Mastercard, has revealed plans to reduce its workforce by three per cent as part of a comprehensive restructuring initiative.

The news comes as the firm revealed its latest Q2 results which exeeded forecasts to show net revenues increased by 11% to $7billion and net income of $3.3billion (up by 15%). There was, however, an increase in operating expenses of 12% and a slight decline in margins (0.4%).

“We delivered another strong quarter across all aspects of our business with double-digit net revenue and earnings growth,” said Michael Miebach, Mastercard CEO. “This was supported by continued healthy consumer spending, robust cross-border volume growth of 17%, and demand for our value-added services and solutions where net revenue increased 18%, or 19% on a currency-neutral basis. These results reflect how payments and services enable each other to create differentiated value for our customers and help us realize even more of the shift to digital.”

During a conference call with analysts, Mastercard executives disclosed plans to incur a one-time restructuring charge of $190 million in the third quarter.

How many is Mastercard laying off?

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The layoffs, expected to impact approximately 1,000 employees worldwide, are set to be completed by September 30. The figure is based on Mastercard's reported staff count at the end of the previous year, which stood at around 33,400 employees globally. Notably, about 67% of the company's workforce was located outside the United States, spanning more than 80 countries.

A statement from the company said: ”We recently announced organizational changes, realigning the regions and businesses to accelerate growth and unlock capacity that will enable investment in long-term opportunities."

The company intends to reallocate resources toward growth areas as these changes are implemented.

Major companies announcing job cuts

The restructuring comes at a time when layoffs are affecting various sectors globally. Major companies such as Amazon, Google, Microsoft and Cisco have also announced job cuts this year, impacting thousands of employees worldwide. Mastercard's decision reflects a broader trend of companies reevaluating their workforce strategies in response to changing market dynamics and economic pressures.

As the company moves forward with its restructuring plans, the focus will be on how these changes impact operational efficiency and long-term growth prospects in the competitive global payments sector.