Visa lays off 1400 employees, how this will influence operation
Fall 2024 updates from Visa payment system brings us some major movements. This time, global fintech world was shaken by massive layoffs at the company — Visa plans to terminate employment contracts with nearly 1,400 employees. The reason, according to "internal sources," is optimization and improvement of business processes, but public is drawing parallels with Visa's recent legal issues.
We previously share details about the high-profile lawsuit against Visa in the US; be sure to follow the link to read more about the situation. Although no final word has been said, such cases undoubtedly hit the budget, and perhaps Visa has decided to reduce expenses in this way.
At the same time, we see news that Santander Bank is reducing its British operations by laying off 1,425 employees. Interestingly, the bank made this decision not due to a crisis but on the wave of success: the third quarter of 2024 was extremely successful in terms of net income, and further performance is expected to be even higher. Additionally, bank has signed a contract with TOKEN IO for cooperation on open banking solutions and is preparing a range of new services. Given this, it would seem logical to strengthen the team and possibly hire additional specialists. But the bank decided otherwise.
Why is this the case? Analyzing the truly noticeable waves of layoffs around the world, especially in the tech sector, we can note that this may indeed be related to optimization. Corporations tend to actively hire and often recruit more specialists than needed, with the intention of selecting the most proactive and suitable for current goals. Is this a problem for specialists? Monoup editorial team believes it is not, and on the contrary —transmission of forces is undoubtedly beneficial for fintech. Since active employees from large companies may soon form competition with their startups and bring a new perspective to the industry. In the case of gaming, this is also a positive trend, as many well-known payment systems began their journey into big finance with processing of high-risk merchants, particularly gaming products. iGaming has become a platform for development of some of today's major payment brands, which means the emergence of new interesting solutions for online entertainment may happen really soon.
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