- PayPal Holdings, Inc (NASDAQ:PYPL) began laying off risk management and operations employees working in Chicago, Omaha, Nebraska, and Chandler, Arizona, this week, Bloomberg reports.
- PayPal ended 2021 with 30,900 employees, a 33% increase from pre-pandemic levels.
- PayPal incurred $20 million in costs tied to its restructuring in the first three months of the year. This year, PayPal looks to incur an additional $100 million in restructuring charges.
- The job cuts will help it save about $260 million annually in employee-related costs.
- PayPal previously announced plans to permanently lay off over 80 people in its headquarters in San Jose, California.
- PayPal aims to drive its operating leverage following a transactional slowdown in its platform in recent quarters after the pandemic recovery.
- PayPal’s platform spending grew by only 15% in the first quarter to $323 billion, the lowest in five years. Supply chain disruptions impeded e-commerce purchases, and more consumers returned to in-store shopping.
- The firm’s former parent company eBay Inc (NASDAQ:EBAY), also rapidly migrated payments away from PayPal’s platform.
- Price Action: PYPL shares traded higher by 1.39% at $81.54 premarket on the last check Friday.
