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Mastercard beats profit forecasts and plans 4% global job cuts

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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.

JD.com Beats Quarterly Revenue Estimates Amid Strong Electronics Demand

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Chinese e-commerce giant JD.com (9618.HK) exceeded market expectations for quarterly revenue on Thursday, reflecting steady consumer demand supported by price cuts and government subsidies. U.S.-listed shares of the platform, a leading online retailer for electronics and home appliances in China, fell nearly 4% in morning trade.

Despite muted overall consumption amid economic pressures and trade uncertainties, JD.com boosted sales through deep discounts, promotions, and state subsidies. Analyst Vinci Zhang of M Science noted that the revenue upside was largely driven by electronics and appliances propped up by government support. Zhang cautioned that year-on-year comparisons may become tougher as subsidies wind down.

In response to sluggish domestic consumption and fierce competition, JD.com is pursuing growth internationally and in new sectors. Last month, the company made an offer to acquire German electronics giant Ceconomy (CECG.DE) for €2.2 billion ($2.57 billion), a strategic move to expand its European footprint. In February, JD entered the food delivery market—dominated by Meituan (3690.HK) and Alibaba’s Ele.me—offering consumer incentives to capture market share. CEO Sandy Xu said the new food-delivery unit is already driving traffic to JD’s core retail operations but warned that “excessive competition” could harm pricing and merchant profitability.

JD.com reported total revenue of 356.66 billion yuan ($49.73 billion) for Q2 ended June, up 22.4% from a year earlier and above the analyst consensus of 331.63 billion yuan. Net income attributable to ordinary shareholders fell to 6.2 billion yuan from 12.6 billion yuan a year ago.

Block Raises 2025 Profit Forecast on Strong Consumer Spending; Shares Rise 6%

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Block reported higher second-quarter net income and raised its full-year gross profit forecast, driven by resilient consumer spending amid economic uncertainty. The payments company’s shares jumped 6% in extended trading following the announcement.

The firm now expects 2025 gross profit to reach $10.17 billion, up from a prior forecast of $9.96 billion. CFO Amrita Ahuja highlighted strong signs in key growth drivers during the quarter that boosted confidence in the outlook.

Key highlights from Q2:

  • Cash App’s gross profit grew 16% year-over-year, though slower than last year’s 23% growth.

  • Square segment’s gross profit increased 11%, fueled by software, integrated payments, and banking product adoption among small and medium businesses.

  • Bitcoin revenue declined to $2.14 billion from $2.61 billion year-over-year.

  • Total net revenue slightly decreased to $6.05 billion from $6.16 billion.

  • Adjusted net profit rose to $385 million (62 cents per share), compared to $301 million (47 cents) a year earlier.

Despite nearly a 10% share price decline in 2025 due to market volatility and earlier profit cuts, Block’s stock has benefited recently from its inclusion in the S&P 500 index.