As part of a realignment or restructuring exercise, Mastercard, the payments network, is going to trim its global workforce by three per cent. That means, about a thousand employees may be rendered jobless by the end of September 2024. Most of those impacted will be notified by 30 September.
The restructuring exercise is expected to result in a one-time expenditure of about $190 million in Q3. The organisation is looking to focus on accelerating growth, unlocking capacity, redeploying resources and investment opportunities for the longer term.
The operating cost of the company went up by almost 12 per cent in Q2, compared to the same time earlier, touching over two billion dollars.
Recently, Mastercard was in the news as it has teamed up with Scale, a fintech startup, to empower small and medium-sized enterprises (SMEs) with modern digital tools and financial expertise. The tie-up will benefit Scale clients, who will now be able to access Mastercard’s services, including advanced payment solutions and cybersecurity services. The collaboration will support businesses by making them more efficient and scalable, especially in the Middle East and Africa. The tie-up will help over challenges and expand their operations in a world that is becoming more digital by the minute.
Mastercard is also improving its Open Banking for Lending programme, so that the lending process becomes smoother and more efficient. The new features will enable Mastercard to provide income and employment coverage to about 95 per cent of the workforce in the US, who are paid through direct deposit. This will result in more inclusive lending decisions, allowing for more people to be part of the digital economy.
