PayPal to cut 2,500 jobs

The newly appointed CEO of payments company PayPal, Alex Chriss, has announced that the company will undergo a “right-sizing” process that will involve cutting down 2,500 jobs, or 9% of its workforce, this year. The affected employees are expected to receive notification by the end of this 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 a letter.

In November, Chriss expressed optimism about boosting revenue beyond transaction-related volume, outlining plans to streamline the fintech firm by trimming its operational costs. While this announcement positively influenced the stock’s post-third-quarter results, analysts have persistently concentrated on scrutinizing PayPal’s margins in the subsequent quarters.

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The company’s low-margin business products have experienced significant growth, while sales of its branded products have slowed due to increased competition from companies like Apple.

Investors are hopeful that PayPal’s stock will be revived by Chriss, who was a former senior executive at Intuit. However, the stock fell by almost 14% last year and failed to recover along with other high-growth technology shares.

The payments firm recently announced the launch of new AI-driven products and a one-click checkout feature.