“We recently completed a strategic review of our business. This will result in downsizing in some areas and functions, but will lead to further investment and increased focus in others,” said CEO Michael Miebach.The job losses could affect more than 1,400 employees, based on a total workforce of about 35,300 in December 2024, according to the company’s latest annual filing.
Shares of Mastercard rose more than 1.7% in early trading.
CONSUMER SPENDING RESIENT
Spending remained largely steady despite concerns about economic uncertainty fueled by US President Donald Trump’s trade policies, persistent inflation and a sluggish labor market. Mastercard’s gross dollar volume, the value of all transactions processed on the platform, rose 7% this quarter, boosted by resilient spending on travel, leisure and essentials.
Households continue to prioritize necessities, while high earners show little sign of withdrawing from discretionary purchases.
Mastercard also reported a 14% increase in cross-border volumes, a metric that tracks spending on cards outside the country in which they were issued.
The company is the first of Wall Street’s largest payment processors to report earnings this quarter, with rival Visa reporting later in the day and American Express results due early Friday.
Credit card balances rose slightly for U.S. banks in the latest quarter, indicating continued demand for loans despite high interest rates.
Mastercard reported adjusted earnings of $4.76 per share, beating average analyst expectations of $4.25, and revenue of $8.81 billion, also above estimates of $8.78 billion, according to data compiled by LSEG.
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