Mastercard profit exceeds expectations, set to lay off 4% globally

Core Insights - Mastercard exceeded Wall Street expectations for Q4 profit due to resilient consumer spending and announced a layoff of about 4% of its global workforce to refocus investments [1][2] Financial Performance - Mastercard reported an adjusted profit of $4.76 per share, surpassing analysts' expectations of $4.25, and revenue of $8.81 billion, exceeding estimates of $8.78 billion [5] - The company's gross dollar volume rose by 7% in the quarter, driven by strong spending in travel, leisure, and everyday essentials [3][4] Workforce Restructuring - The restructuring will lead to a charge of approximately $200 million in the current quarter and could affect over 1,400 employees from a total workforce of about 35,300 as of December 2024 [2] Consumer Spending Trends - Consumer spending has remained resilient despite economic uncertainties, with households prioritizing necessities while high earners continue to spend on discretionary items [3][4] - There was a 14% increase in cross-border volumes, indicating robust spending on cards outside the country of issuance [4]