Thread regarding VISA Inc. layoffs

Another Layoff Coverage by Biz Journals

Another long article on the Visa layoff debacle - Source: http://www.bizjournals.com/sanfrancisco/news/2016/11/01/visa-layoffs-fintech-payments-credit-cards-debit.html

TITLE: Visa slashes hundreds of jobs as it digests European acquisition

Layoffs are roiling San Francisco-based Visa, with the card giant eliminating an undislosed number of positions around the globe as it digests its purchase of Visa Europe and adjusts to the rapidly shifting payments landscape that sparked a proliferation of fintech startups eager to eat Visa's lunch.

Visa issued a statement Tuesday acknowledging "a variety" of job cuts, but offered no details on the size and scope. Several Visa employees and former employees tell the San Francisco Business Times that Visa recently cut 800 to 1,500 jobs, with the company's former headquarters campus in Foster City especially hard hit.

Visa CEO Charlie Scharf won't be the only one heading for the exit as the card giant is said to lay off hundreds.

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Visa CEO Charlie Scharf won't be the only one heading for the exit as the card giant is… more

SPENCER A BROWN

Visa employs 4,000 people in the Bay Area and 11,000 worldwide, according to Business Times research.

“The acquisition of Visa Europe, combined with changes in our industry, provide us with the opportunity to reassess our cost structure globally and make adjustments," Visa said in a statement. "In undertaking this assessment, we have decided to eliminate a variety of roles globally, while also creating new roles that better align with our future growth plans.

"These changes position Visa for continued growth and allow us to better serve the needs of clients in a rapidly evolving payments environment,” according to the statement.

As of late Tuesday, Visa did not appear to file any of what's known as WARN notices, required to be filed in advance with California regulators for significant layoffs. That's a point not lost on one person posting anonymously at thelayoff.com who labels his post, " What happened to the WARN Act?"

Visa told the Business Times that WARN filings will be made "as appropriate."

The layoffs occur as Visa copes with rapidly changing technology and the need for increased security. With more secure, chip-enabled debit and credit cards proliferating, thieves are turning to online card usage to put through fraudulent charges, the Wall Street Journal reported last week.

This month, Visa is opening a new office in Palo Alto— one of the nation's most expensive places to do business. The new location will employ about 300 people focused on technology research, business intelligence, data security and new services for merchants.

Last week, Visa CEO Charlie Scharf said he was stepping down, saying he can no longer spend the time in the Bay Area to run the company while his family is in New York.

The company also boosted its quarterly dividend 18 percent last month after posting higher earnings and revenue on the Visa Europe purchase. But the company reined in analysts' expectations, saying that adjusted earnings-per-share growth in fiscal 2017 will be in the mid-teens compared to analysts' consensus expectation of 19 percent. The company now anticipates revenue growth for fiscal 2017 at 16 percent to 18 percent on a nominal-dollar basis. Analysts had expected revenue growth approaching 20 percent.

Visa (NYSE: V) shares closed in New York Tuesday at $81.62, down 89 cents, or 1 percent. The company's shares recently changed hands at an all-time high of $83.79

The latest round of layoffs might be a topic of discussion when Visa Chief Financial Officer Vasant Prabhu speaks Nov. 15 at the UBS Global Technology Conference in San Francisco.

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Post ID: @OP+Kb78IUf

4 replies (most recent on top)

I am saddened by the news that Visa has let go of so many people, although they've been doing this in smaller layoffs every year for the last little while... My heart goes out to those who lost their jobs. I honestly feel that those who where let go are great workers striving to do the right things. I was at Visa for over 1.5 years (not too long) before being let go about 2 months prior to this major layoff (let go in late July, 2016). I was told that there wasn't the right synergy on my team. What I heard was, "we're in-sourcing your job to India". For those let go, I honestly wish that they would have looked to realign those employees into new opportunities where the business needs their skills and knowledge and growth. It's also hard to see employees go when the company is reporting record profits!

Shortly after I was let go, I sent a message my SVP, asking him "why would Visa choose to eliminate so many key jobs recently (including mine) and in effect get rid of so many great individuals, all in the name of transformation while simultaneously striving to hire great employees?". He told me, "We are making tough decisions and increasing the technical resources that are needed at VISA to execute the transformation."

I do not regret working for Visa. They payed me well and allowed me to buy my first home for my family. They also payed for a number of my certifications including ITIL, Six Sigma Black Belt, and Lean IT (thankfully, these were payed for in the 2015 budget. I was told that the 2016 training budget was cut by about 60% from 2015). I was also fortunate to work with some amazing people and I gained skill sets and knowledge that allowed me to get my new job (started a month after being let go).

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Post ID: @esiu+Kb78IUf

Visa confirms layoff of hundreds at Foster City campus

Nov 16, 2016, 4:00pm PST Updated Nov 16, 2016, 4:19pm PST

http://www.bizjournals.com/sanfrancisco/news/2016/11/16/visa-layoffs-san-francisco-fintech-payments-jobs.html

San Francisco-based Visa cut 213 workers at its Foster City campus, the payments giant told California regulators.

The layoff notice, filed under the Worker Adjustment and Retraining Notification Act, was received by the State of California on Nov. 7. The layoffs are effective Jan. 6, 2017, Visa said.

Earlier this month, Visa (NYSE: V) told the San Francisco Business Times that it was eliminating positions around the globe as it digests its $23 billion purchase of Visa Europe and adjusts to the rapidly shifting payments landscape.

Visa said at the time that "a variety" of job cuts were being made, but offered no details such as size or scope of the layoffs.

Both current and former Visa employees have told the Business Times that Visa was cutting between 800 and 1,500 jobs globally, hitting morale in the process.

"Visa was once a great company," lamented one long-time employee, citing a reduction in employee benefits since the company went public in 2008.

Visa, which employs 4,000 people in the Bay Area and 11,000 worldwide, defended its decision to cut staff.

“The acquisition of Visa Europe, combined with changes in our industry, provide us with the opportunity to reassess our cost structure globally and make adjustments," Visa said in a statement. "In undertaking this assessment, we have decided to eliminate a variety of roles globally, while also creating new roles that better align with our future growth plans.

"These changes position Visa for continued growth and allow us to better serve the needs of clients in a rapidly evolving payments environment,” according to the statement.

One group not complaining at Visa is the shareholders. The company, led by the soon-to-depart CEO Charlie Scharf, recently boosted the quarterly dividend 18 percent.

Visa shares closed in New York Wednesday at $80.08, up $1.68, or 2 percent. The company's shares changed hands at an all-time high of $83.96 on Nov. 10.

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Post ID: @epdr+Kb78IUf

I agree with you use other cards and tell your friends and family.

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Post ID: @2dfp+Kb78IUf

Malarky. Charlie got his golden parachute and majority screwed a very dedicated workforce that was therelong BEFORE he was.

Pushing out "older" employees, in age as well as experience, to fill rolls with new? In the same locations, in some cases. Some rolls moved to Austin.

Everyone knows the new staff are brought in at higher wages than their colleagues that have been on staff for years. Old staff tends to hit a ceiling and the greedy execs don't do anything about it - layoffs are the easy way out.

This smells bad.

Use your AMEX and MC and DSC cards.

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Post ID: @1yer+Kb78IUf

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