Visa CEO Ryan McInerney announced Tuesday that the payments giant was slashing roughly 7% of its workforce as part of a streamlining effort.

The company plans to cut 2,600 jobs, largely across Visa's technology and product teams, McInerney informed employees in a memo viewed by Barron's. The company is "entering a new era in commerce with a business that has real momentum" following actions it has taken over the past several years, he added.

Shares were up 1.6% on Tuesday. The benchmark S&P 500 ticked up 0.4%.

"To capture the opportunities ahead and best position Visa to lead this transformation, we must continue evolving how we work," McInerney wrote, adding that artificial intelligence was helping "shape the way work gets done" at the company.

The technology is likely one factor behind the layoffs, allowing the company to automate tasks while cutting personnel costs. In fact, major tech firms like Intel, Cisco, and Meta Platforms have explicitly linked job cuts in recent months to increased spending on the technology.

But AI likely isn't the sole driver. Visa has been focusing on new initiatives, such as expanding its geographic footprint and entering new verticals like stablecoins -- likely "the choices we have made over the past few years" that McInerney referenced in his letter to staff.

The memo came ahead of Visa's fiscal third-quarter earnings, which are slated for after the closing bell Tuesday. Analysts expect Visa to post adjusted earnings of $3.23 a share and revenue of $11.4 billion, compared with profit of $2.69 a share and revenue of $10.2 billion a year earlier.