Mastercard Layoffs: 3% Workforce Cut in Strategic Shift
Why is the reason for Mastercard layoff?
Mastercard is set to reduce its global workforce by 3%, impacting around 1,000 employees as part of a strategic reorganization. The layoffs, which are expected to be completed by the end of the current quarter, are part of a broader effort to refocus resources on key growth areas, according to a report by Reuters on Friday, August 16.
A Mastercard spokesperson confirmed that the company plans to redeploy affected employees into sectors poised for growth. The restructuring follows a previous announcement made by Chief Financial Officer Sachin Mehra in July, indicating that the company would incur a one-time restructuring charge in the quarter ending September 30.
What is the focus of Mastercard’s reorganization?
The realignment, first detailed in an April 9 press release, aims to streamline Mastercard’s organizational structure into three core areas: Core Payments, Commercial & New Payment Flows, and Services. This strategy is designed to accelerate growth, enhance shareholder value, and maintain a competitive edge.
“These organizational changes are intended to bolster our strategy, diversify revenue, and differentiate our offerings,” said Mastercard CEO Michael Miebach in the April statement. “Our teams will be better positioned to execute swiftly and deliver enhanced value to our partners and customers.”
What new initiatives has Mastercard launched recently?
Mastercard’s most recent earnings report, released on July 31, showed robust performance, with net revenue rising 14% year-over-year to $6.3 billion in the second quarter. Despite a mixed macroeconomic environment, Miebach noted that consumer spending remains strong, supported by a resilient labour market and wage growth. However, he also acknowledged signs of moderation in job creation and continued concerns over inflation and interest rates.
In addition to the restructuring, Mastercard has been actively expanding its portfolio through new products and partnerships. Recent initiatives include the launch of a crypto-to-fiat card in collaboration with Web3 platform MetaMask and Baanx, enhancements to its open banking for lending program with Argyle, and a partnership with U.K. neobank Ampere to facilitate card-to-card payments.
Need Help from Whitten & Lublin?
If you’re a non-unionized Mastercard employee in Canada and are facing job loss due to downsizing or restructuring, you may be entitled to full severance pay. The amount of severance can vary based on several factors and may extend up to 24 months’ pay. In Ontario, mass layoffs involving 50 or more employees can result in more significant severance packages. If you haven’t received your full severance, you have the right to seek additional compensation. Consulting with an experienced employment lawyer is essential to ensure you receive what you’re entitled to.
Whitten & Lublin is here to assist you during the challenging times of job loss or termination. Our experienced employment lawyers are ready to help you explore your legal options and secure the compensation you deserve. If you’ve been affected by recent layoffs in Canada, contact us for a consultation through our online portal or by calling (416) 640 2667 today.