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[NEW YORK] MasterCard Inc will cut more than 500 jobs companywide as the payment network combines some businesses and focuses on increasing digital transactions.
MasterCard took a US$87 million charge in the fourth quarter tied to realigning some business groups, redeploying resources geographically and consolidating its processing businesses, the Purchase, New York-based firm said Friday in a statement as it reported results. The effort includes cutting more than 500 jobs - half in the US - in areas including processing and various corporate functions, Chief Financial Officer Martina Hund-Mejean said.
"We will take some of the savings from the restructuring and invest it in different businesses and different geographies," Hund-Mejean said in a phone interview. That includes broadening MasterCard's digital initiatives and expanding in places like Asia and Latin America where revenue is increasing, she said.
Many of the job cuts have already taken place, while the remainder will be done in coming weeks, Hund-Mejean said. Along with the reductions, the company will also hire in other areas, she said. MasterCard had 8,200 employees at the end of 2013, including 4,400 in the US, according to financial filings.
MasterCard is investing in new technologies and forging partnerships with companies including Apple Inc. as consumers increasingly use mobile phones and other digital devices to make payments. The company, which generates most of its revenue from outside the US, said purchases on its network rose 12 per cent in the quarter.