The American provider of payment services PayPal Holdings will reduce the number of its employees by 2,500 this year. This is about nine percent of the workforce. With reference to today’s internal report of the head of the company, Alex Chriss, the Bloomberg agency reported about it. The company is facing increasing competition, pressure on profits and a series of downgrades from analysts.
Employees
Chriss said in the letter that the decision was made to “resize” the company through both outright cuts and the elimination of vacant positions over the course of the year. Employees affected by the changes will be notified by the end of the week.
PayPal employed approximately 29,000 people at the end of 2022. The company announced a similar round of cuts last January.
Actions for the past year
The company’s shares have written off over 20 percent over the past year. The company’s profit was falling, so it lowered its full-year adjusted operating margin outlook. Chriss replaced Dan Schulman at the head of the company last September.
Paypal, once a pioneer in the field of payment services, has recently faced competition from companies such as Apple or Zelle. At least four analysts downgraded the company’s stock this month.
Source Czech Press Office
