Mastercard, the payments network, will be reducing its global workforce by three percent as part of a realignment or restructuring exercise. This means that about a thousand employees might lose their jobs by the end of September 2024, with most notifications expected to be sent out by September 30th.
The restructuring is estimated to incur a one-time cost of around $190 million in Q3. The organization aims to prioritize accelerating growth, unlocking capacity, redeploying resources, and seeking investment opportunities for the long term.
The company’s operating costs rose by nearly 12 percent in Q2 compared to the same period last year, reaching over two billion dollars.
In recent news, Mastercard has partnered with Scale, a fintech startup, to provide modern digital tools and financial expertise to small and medium-sized enterprises (SMEs). Scale clients will now have access to Mastercard’s services, including advanced payment solutions and cybersecurity services. This collaboration will aid businesses in becoming more efficient and scalable, particularly in the Middle East and Africa, while also helping them overcome challenges and expand in an increasingly digital world.
Mastercard is also enhancing its Open Banking for Lending program to streamline and improve the lending process. The new features will allow Mastercard to extend income and employment coverage to approximately 95 percent of the US workforce who are paid through direct deposit. This will lead to more inclusive lending decisions, enabling more people to participate in the digital economy.
