PayPal Holdings Inc. said it will cut 2,000 employees as it battles a broader economic downturn that has hit the firm’s business in recent quarters.
The cuts, which will affect about 7% of employees, will take place in the coming weeks, Chief Executive Officer Dan Schulman told employees in a memo.
“While we have made substantial progress right-sizing our cost structure, and focused our resources on our core strategic priorities, we have more work to do,” Schulman said.
Schulman has been vocal about his plans to improve his firm’s operating leverage — or its ability to grow revenue faster than expenses — and PayPal launched a cost-cutting initiative last year, saying was expected to result in $1.3 billion in savings this year.
Still, the company’s stock has been battered by a slowdown in payments growth on its platform following the pandemic, which started to dampen the wave of online spending.
The text of this story is published from a wire agency feed without any modification. Only the headline has been changed.
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