Global payments giant Mastercard has announced that it will cut 3% of its global workforce, affecting approximately 1,000 employees. The company, which is headquartered in New York state, plans to tell most employees that they will lose their jobs by the end of the third quarter in the next two months.
As notes Reuters, the decision is part of a major reorganization of the company announced earlier this year. Mastercard intends to reallocate resources to areas of growth, including expanding into new markets and strengthening cybersecurity and anti-fraud capabilities.
Restructuring is part of a new organizational structure, announced Mastercard in April 2024. The new framework focuses on three key areas: core payments, commercial and new payment streams, and services.
The company expects to record one-time restructuring charges of $190 million in the third quarter. Despite the restructuring, Mastercard continues to show strong financial performance. In its second-quarter earnings report on July 31, the company reported net income of $2.8 billion, a 14% year-over-year increase.
As of the end of 2023, Mastercard employed 33,400 people.
