Visa shrinks workforce by 7%, 2,500 jobs cut; AI-led restructuring hits India

Visa's latest round of job cuts has reached India, with employees waking up on July 29 to unexpected layoff emails as the global payments giant began implementing a workforce reduction that will affect nearly 2,600 employees worldwide. While the move represents about 7 per cent of Visa's global workforce, it also signals a broader transformation underway across the technology sector, where artificial intelligence is increasingly influencing how companies structure their teams.

The restructuring has drawn attention not only because of the scale of the layoffs, but also because of its implications for India's technology workforce, which has long served as a key engineering and operations hub for multinational firms.

India employees caught by surprise

According to multiple media reports, several Visa employees in India received termination emails between 4 am and 5 am on July 29. By the time many logged in for work later that morning, they had already been informed that their roles had been eliminated. Although Visa has not disclosed how many India-based employees were affected, reports suggest the impact was significant. In one India team comprising 28 employees, around 10 reportedly lost their jobs.

The layoffs extended beyond entry-level positions. Senior directors, engineering managers and long-serving employees were also among those affected, indicating that the restructuring cut across organisational levels rather than targeting only junior staff. Employees reportedly received severance packages along with notice periods ranging from 15 to 30 days. In several cases, however, access to company systems was revoked within days, requiring employees to return company laptops and identity cards soon afterwards.

India remains a key technology hub

Visa employs more than 3,500 people across India through technology and corporate centres located in Bengaluru, Mumbai, Chennai and Hyderabad. These facilities play a critical role in the company's global engineering, product development and business operations.

Given India's importance to Visa's technology ecosystem, the layoffs have sparked concerns about whether global firms may increasingly trim engineering teams as AI assumes a larger role in software development, automation and business processes.

AI at the centre of Visa's strategy

Visa has maintained that the layoffs are part of a broader effort to improve efficiency and redirect investments towards areas expected to drive future growth.

Artificial intelligence has emerged as one of the company's biggest priorities. Chief Executive Officer Ryan McInerney has repeatedly outlined Visa's ambition to move beyond AI tools that merely assist employees and towards "agentic AI"—systems capable of independently performing tasks while operating under human supervision.

The shift represents a significant change in workplace dynamics. Rather than simply using AI to enhance employee productivity, companies are increasingly evaluating whether the same work can be completed with smaller teams supported by advanced AI systems.

According to Reuters, Visa's latest restructuring has primarily affected technology and product functions. With the company employing about 34,100 people globally in fiscal 2025, the latest cuts amount to roughly one in every fourteen employees.

Business remains financially strong

Unlike many corporate downsizing exercises triggered by declining revenues or financial stress, Visa's restructuring comes at a time when the company continues to post solid business performance.

Consumer spending has remained resilient across several markets, while Visa's transaction-based business model shields it from the credit risks typically faced by traditional lenders. Analysts therefore view the layoffs less as a cost-cutting exercise driven by weak performance and more as a strategic realignment aimed at preparing the organisation for an AI-led future.

Wider implications for India's tech sector

For India, the layoffs carry significance beyond Visa itself.

Over the past two decades, multinational technology companies have built extensive engineering, software development and operational teams across the country. India's vast pool of skilled technology professionals has become central to global product development and innovation.

However, as AI automates routine coding, testing, product management and operational functions, industry experts believe companies may increasingly reassess workforce requirements. Visa's decision has therefore intensified concerns that similar restructuring exercises could become more common across the technology industry.

Performance no longer guarantees security

The restructuring has also highlighted a growing reality in the AI era: strong performance may no longer be enough to guarantee job security.

Former Visa employee Arnab Das wrote on X that his former manager—who reportedly led an entire product portfolio and consistently received strong performance ratings—was also laid off. His comments reflected the uncertainty employees now face as companies redesign teams based on future strategic priorities rather than past individual performance alone.

Industry-wide AI reset underway

Visa is far from the only company reshaping its workforce around artificial intelligence.

Earlier this year, Mastercard announced plans to reduce its global workforce by around 4 per cent as part of a strategic reorganisation. Fintech company Block revealed plans to eliminate nearly 4,000 jobs, while Amazon said it would cut approximately 16,000 corporate roles. Cloudflare announced more than 1,100 layoffs, Atlassian reduced around 1,600 positions, and Standard Chartered unveiled plans to eliminate nearly 15 per cent of corporate-function roles over four years as AI assumes a larger role across its operations.

The trend suggests that businesses across sectors are no longer treating AI as merely a productivity tool but as a catalyst for redesigning organisational structures.

Adapting to an AI-first workplace

Experts say the changing employment landscape will require workers to continuously update their skills rather than rely solely on technical expertise accumulated over time.

Umesh Kothari, Assistant Dean and Assistant Professor at SP Jain School of Global Management, said AI is transforming workplaces from environments organised around repetitive tasks to those centred on judgement, creativity, problem-solving and decision-making.

He noted that in an economy where technologies and job roles are evolving rapidly, the ability to continuously learn, adapt and apply knowledge in new contexts will become one of the most valuable skills for long-term career resilience.