In a significant move reflecting the ongoing transformation of the financial and technology sectors, Visa announced on Tuesday that it will cut approximately 7% of its global workforce, or about 2,600 positions. The layoffs are part of a broader restructuring effort by CEO Ryan McInerney to streamline operations and redirect investment toward growth areas such as affluent customers, cross-border payments, and stablecoins.
According to a memo confirmed by CNBC, McInerney stated that the company must evolve its operations as artificial intelligence changes how work is performed. The job cuts will primarily affect employees in technology and product operations, with notifications beginning on Tuesday. Visa employed roughly 34,100 people at the end of its last fiscal year and is scheduled to report quarterly earnings after the market close.
Meanwhile, Meta Platforms and BlackRock announced a partnership to develop and operate a $14 billion AI data center campus in El Paso, Texas. This venture underscores the growing reliance on outside capital to finance AI infrastructure. Funds managed by BlackRock will hold an 80% stake, while Meta retains the remaining 20%. BlackRock's investment will be partially financed with $12.5 billion in debt. Meta will contribute approximately $2.3 billion worth of land and construction assets already under development, while BlackRock will provide about $4.9 billion in cash.
The El Paso campus, one of Meta's 28 operating or planned U.S. data centers, is designed to deliver 1 gigawatt of compute capacity and is expected to begin operations in 2028. This agreement is part of Meta's broader AI strategy, which includes plans to invest $600 billion in data centers by 2028. The company is also developing a separate Louisiana facility that could eventually reach 5 gigawatts of compute capacity with investments exceeding $50 billion. Investors continue to monitor the cost of Meta's AI expansion as the company prepares to report second-quarter earnings.
In commodity markets, oil prices fell about 5% on Tuesday, extending recent losses as diplomatic efforts aimed at reducing tensions in the Middle East gained traction. Brent crude dropped $4.64, or 5.25%, to $83.72 a barrel, while West Texas Intermediate crude declined $3.65, or 4.42%, to $78.95. Both benchmarks were on track for their lowest closes since July 13 after falling roughly 17% over the previous three sessions. Market sentiment improved after reports that Oman presented Iran with a Gulf-backed proposal to manage shipping through the Strait of Hormuz. Iran has not yet responded to the proposal. President Donald Trump also said the United States was holding "good talks" with Iran while warning military action could resume if negotiations fail.
Gold prices slipped to their lowest level in one week as a stronger U.S. dollar and expectations for tighter monetary policy weighed on investor sentiment. Spot gold declined 1.2% to $4,026.49 per ounce after touching its lowest level since July 21, while U.S. gold futures settled 0.9% lower at $4,026.7. The dollar remained near a one-month high, making dollar-denominated bullion more expensive for overseas buyers. Markets are focused on Wednesday's Federal Reserve policy announcement and comments from Chair Kevin Warsh. According to CME FedWatch data, traders see a 71% probability that the Fed will leave interest rates unchanged this week, while pricing in a 75% chance of a rate hike at the September meeting.
Investors will also monitor Thursday's Personal Consumption Expenditures inflation report for further signals on the outlook for U.S. monetary policy. Commerzbank lowered its year-end gold price forecast by $300 to $4,500 per ounce, citing higher interest-rate expectations and weaker investor demand for gold ETFs.
For more on the evolving landscape of AI infrastructure, see our coverage of Meta and BlackRock's Texas data center project and how AI is reshaping Wall Street's valuation playbook.
This article is for informational purposes only and does not constitute financial advice.
