PayPal To Sack About 2,500 Workers Globally

Payments giant PayPal is set to undergo a significant workforce reduction, with around 2,500 jobs slated to be cut globally.

CEO Alex Chriss shared this decision in a letter addressed to PayPal staff on Tuesday, outlining the intention to “right-size” the company by implementing both direct cuts and eliminating open positions throughout the year. Those affected by the workforce reduction are expected to receive notifications by the end of the week.

Chriss emphasized the purpose of this move, stating, “We are doing this to right-size our business, allowing us to move with the speed needed to deliver for our customers and drive profitable growth.” The CEO’s letter was subsequently posted on PayPal’s website after the market’s close, coinciding with a 0.13% decrease in the company’s shares for the day.

In November, Chriss had hinted at plans to boost revenue beyond transaction-related volume and committed to streamlining the fintech firm by reducing its cost base. While this announcement initially contributed to a stock rally following the third-quarter results, analysts have continued to focus on PayPal’s margins in recent quarters.

The company has seen robust growth in its low-margin business products, while expansion in its branded products has slowed, facing increased competition from industry players like Apple. Investors are optimistic that Chriss, formerly a senior executive at software company Intuit, will be instrumental in revitalizing PayPal’s stock, which experienced an almost 14% decline last year and missed out on the broader sector-wide rebound in high-growth technology shares.

As part of its strategy to stay competitive, PayPal recently revealed plans to launch new artificial intelligence-driven products and introduce a one-click checkout feature, showcasing a commitment to innovation in response to the evolving landscape of the payments industry.

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