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    Wednesday, January 31, 2024

    PayPal to Sack About 2,500 Workers Globally

    Payments giant PayPal (PYPL.O) has revealed its plan to reduce workforce by cutting out about 2,500 jobs globally.

    This was disclosed by the firm CEO Alex Chriss, in a letter to the staff of Paypal on Tuesday.

    According to the newly appointed CEO, 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 also posted the letter to its website after market close. Paypal’s shares ended the day down 0.13%.

    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.

    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 (AAPL.O), opens new tab.

    Investors hope Chriss, who was previously a senior executive at software company Intuit (INTU.O), opens new tab, will revive PayPal’s stock. It fell nearly 14% 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.

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