Mastercard Incorporated (MA) shares are trading lower in the premarket today after the company announced plans to reduce its global workforce by 3%. This reduction is expected to impact around 1,000 employees, representing a small portion of Mastercard’s total workforce of approximately 33,400. The company expects to complete most of the job cuts by September 30.
In an emailed statement to Bloomberg, a Mastercard spokesperson explained the rationale for the workforce reduction. They stated that the company is “realigning the regions and businesses to accelerate growth and unlock capacity that will enable investment in long-term opportunities.” The statement further emphasized that Mastercard will “redeploy resources into growth areas” as a result of the changes.
Despite the layoffs, Mastercard recently reported positive financial results for the second quarter. The company’s net revenues reached $7.0 billion, exceeding the analyst consensus estimate of $6.85 billion. Adjusted earnings per share (EPS) rose 24% to $3.59, surpassing analyst expectations of $3.51.
Investors interested in gaining exposure to Mastercard stock can consider the iShares U.S. Financial Services ETF (IYG) and the Financial Select Sector SPDR Fund (XLF).
As of the last check on Monday, MA shares were up 0.09% at $469.28 in premarket trading.
