PayPal announced plans to downsize workforce by 2,000 amid macroeconomic slowdown impacting business operations.
The cuts, which will affect about 7 per cent of employees, will take place in the coming weeks, CEO Dan Schulman told employees in a memo.
“While we have made substantial progress in right-sizing our cost structure, and focused our resources on our core strategic priorities, we have more work to do,” Schulman said.
PayPal’s stock has been battered by the slowdown in growth in payments volume on its platform after the pandemic began to recede. In response, the company has vowed to reduce expenses — including through job cuts and the shuttering of offices across the country.
Those moves should have helped the company notch US$900 million in savings last year and at least an additional US$1.3 billion in 2023, Schulman has said. The 65-year-old CEO has been vocal about his plans to improve his firm’s operating leverage — or the ability to grow revenue faster than expenses.
PayPal shares jumped 1.9 per cent to US$81.14 at 3.55 pm in New York. The stock has climbed 14 per cent this year, outpacing the 9 per cent advance of the S&P 500 Information Technology Index.