PayPal Holdings Inc. is set to implement a new round of layoffs as part of its ongoing cost-cutting measures. The company plans to reduce its workforce by 9% this year through a combination of layoffs and the elimination of certain open positions. In a letter addressed to the staff, PayPal’s Chief Executive Alex Chriss stated that this move aims to right-size the business, enabling faster responses to customer needs and driving profitable growth. Additionally, Chriss emphasized the company’s commitment to investing in areas that are expected to generate and accelerate growth.
As of the end of 2022, PayPal had 29,900 employees, according to its last 10-K report. It is worth noting that a year ago, under the leadership of former CEO Dan Schulman, the company had already reduced its workforce by 7%. The decline in PayPal’s stock performance over the past couple of years, with a 61% drop in a two-year period and a 79% decrease from its peak in July 2021, has put pressure on the company. Recognizing the need for improved efficiency and a sharpened focus on its core competencies, Chriss has been vocal about making PayPal leaner.
During the last earnings call in November, Chriss acknowledged the abundance of opportunities available but also stated that the company was spreading itself too thin. He expressed a desire to concentrate on the most impactful opportunities for customers and business growth. In his recent note, Chriss emphasized the importance of instilling a culture of innovation that can position PayPal as the strong entity it truly deserves to be.
Affected employees will be notified of their status by the end of the week. As of Tuesday afternoon, PayPal’s shares remained relatively stable.
Additional Resources:
- PayPal CEO sees ‘huge monetization opportunity’ after revamp, but stock drops
