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.
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.