Visa Layoffs Spark Tax Debate Amid $563M Restructuring

Visa's decision to lay off approximately 2,600 employees, about 7% of its global workforce, has sparked controversy in India regarding tax treatment of severance packages. The company reported a net revenue of $11.6 billion in Q3 2026, a 14% increase from the same period last year.

The layoffs are part of Visa's broader strategy to drive efficiency and reinvest in high-growth areas, specifically artificial intelligence. A one-time charge of $563 million was recorded for workforce reduction and restructuring costs.

Industry professionals have called for tax relief on compensation meant to support employees during job transitions, arguing that taxing severance packages as 'profits in lieu of salary' is unfair. This criticism centers around the financial burden placed on employees who receive such packages.