Global payments company Mastercard reported fourth-quarter profit that exceeded Wall Street expectations, supported by resilient consumer spending, while announcing plans to cut about 4% of its global workforce as part of a strategic restructuring. The move is aimed at reallocating resources toward priority growth areas.
Executives said the restructuring will result in a charge of roughly $200 million in the current quarter. Chief executive Michael Miebach said the company recently completed a strategic review that will reduce roles in some areas while increasing investment and focus in others. Based on Mastercard’s workforce of about 35,300 employees at the end of 2024, the cuts could affect more than 1,400 staff globally.
Despite economic uncertainty linked to trade policy concerns, persistent inflation, and a soft labor market, consumer spending has remained relatively strong. Mastercard reported a 7% rise in gross dollar volume during the quarter, driven by steady demand for travel, leisure, and essential goods. Cross-border spending volumes climbed 14%, reflecting continued international travel and overseas card use.
The company posted adjusted earnings of $4.76 per share, beating analyst expectations of $4.25, while revenue rose to $8.81 billion, also slightly above forecasts. Mastercard shares rose in early trading following the results.