Following PayPal and Block, Visa (V.US) also initiates layoffs: 7% of employees are being optimized, with resources refocused on cross-border payments, stablecoins, and B2B.

According to Zhitong Finance APP, in order to enhance competitiveness in the increasingly fierce payment industry, Visa Inc. (V.US) CEO Ryan McInerney is pushing for a company-wide restructuring, with plans to cut about 2,600 positions.

According to an internal memo, McInerney informed employees on Tuesday that the layoffs will account for approximately 7% of Visa’s global workforce, mainly affecting the technology and product teams.

He wrote in the memo: “I firmly believe we are making the right decisions for Visa, our clients, and partners. We will continue to drive efficiency across the company so that we can reallocate resources to the business areas with the most growth potential.”

It is reported that Visa is scheduled to release its quarterly earnings after the U.S. market closes on Tuesday. As of the end of the previous fiscal year, the company had about 34,100 employees, more than double the number from a decade ago. Recently, several fintech competitors, including PayPal Holdings Inc. (PYPL.US) and Block Inc. (XYZ.US), have announced larger-scale layoffs.

Driven by this news, Visa shares rose as much as 2% in pre-market trading on Tuesday. As of Monday’s close, the stock was up 3.4% for the year, slightly below the S&P 500 Financials Index (which includes 76 components) which gained 3.8% over the same period.

McInerney also noted in the memo: “To seize future opportunities and keep Visa ahead during this transformation, we must continue to evolve the way we work. Artificial intelligence (AI) is also accelerating this change and reshaping how work is done within Visa.”

According to informed sources, although AI is being used to reduce repetitive tasks and accelerate product development, it is not the sole reason behind these layoffs. Visa plans to reallocate the resources to consumer payments, commercial and fund movement solutions, and value-added services, which include stablecoins, cross-border payments, and business-to-business (B2B) services.

McInerney summarized in the memo: “The choices we have made over the past few years are propelling us into a new era of business, and the company is showing strong growth momentum. This is reflected in our consistently solid financial performance, client satisfaction, employee engagement, and breakthrough innovation in product development and delivery speed.”