Payments firm PayPal to reduce global workforce by 9% in 2024
PAYMENTS firm PayPal Holdings is planning to cut about 2,500 jobs, or 9 per cent of its global workforce, this year, a letter from CEO Alex Chriss, seen by Reuters, showed on Tuesday (Jan 30).
In the letter to staff, newly appointed CEO Chriss said the decision was made to “right-size” the company through both direct cuts and the elimination of open roles throughout the year. The staff that will be affected are expected to be notified by the end of the week.
“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,” Chriss wrote in the letter.
The company did not immediately respond to a Reuters request for comment. Paypal’s shares were last up 0.5 per cent in late afternoon trading.
In November, Chriss said he expects to increase revenue outside of purely transaction-related volume and pledged to turn the fintech firm leaner by reducing its cost base.
Though the announcement had helped rally the stock after third-quarter results, analysts have remained focused on PayPal’s margins in recent quarters.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The company’s low-margin business products have risen strongly, while growth in its branded products has slowed due to increased pressure from competitors such as Apple.
Investors hope Chriss, who was previously a senior executive at software company Intuit, will revive PayPal’s stock. It fell nearly 14 per cent last year and missed a broader sector-wide rebound in high-growth technology shares.
Last week, the payments firm announced it was launching new artificial intelligence-driven products as well as a one-click checkout feature.
Meanwhile, rival Block, led by Twitter co-founder Jack Dorsey, also began to cut jobs this week as part of its previously disclosed plans to trim headcount and reduce costs, a source said. REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
Binance founder Zhao Changpeng gets 4 months in prison
Fifth money launderer gets longer jail term of 15 months
Canada's economic growth misses estimates, boosting chances of rate cut
Abu Dhabi wealth fund ADQ attracts strong demand for 2-part bond issue
Hong Kong vies with US in Bitcoin ETF market
PayPal lifts 2024 profit forecast as spending stays resilient, margins improve