PayPal has begun layoffs across the company, according to multiple reports, including an article published by The information.
It’s not yet clear at the time of writing how many people will be affected by the job cuts, but a source told TechCrunch it’s expected to be in the “thousands.” Modernize: Bloomberg reported today that approx 9% of the company, or about 2,500 peoplewill be affected.
Modernize: Shared by PayPal a letter that President and CEO Alex Chriss sent to employees today, confirming that 9% of staff will be affected by the job cuts “through immediate reductions and the elimination of open roles over the course of the year.”
In it, he wrote: “While I’ve encouraged the innovation our team delivers, we need to execute faster and ensure we’re focused on solving our customers’ most critical needs and problems. Specifically, across our organization, we need to bring more focus and efficiency, develop automation, and consolidate our technology to reduce complexity and overlap. We have started on this journey, but we have a lot of work to do – and 2024 marks a year of change, including some difficult but necessary decisions to get where we need to go.”
Almost a year ago today, the company announced plans to lay off 2,000 employeesor about 7% of its workforce.
In recent months, PayPal has made some changes to its executive team. Chriss joined the company in September as CEO after 19 years at Intuit. Shortly after taking the wheel, Chris said it expected to “increase revenue outside of net transaction-related volume,” it says Reuters. In November, Archie Deskus transitioned from his role as the company’s Chief Information Officer to the role of Chief Technology Officer. Jamie Miller has been appointed to serve as its chief financial officer.
PayPal has expanded over the years with fintech acquisitions like Venmo, Xoom and Honey. But it still struggles to compete with the likes of Apple and Stripe. Last week it will pilot some new upcoming updates to its service, some of which will leverage AI-based personalization. The company is introducing a new CashPass cash back offering called Smart Receipts, with personalized recommendations, improved checkout and guest experiences, Venmo improvements for small businesses, and a new offers platform for merchants.
In December, TechCrunch reported that Amazon was dropping Venmo as a payment option. In October, PayPal was hit with a class-action lawsuit by consumers represented by the law firm Hagens Berman, alleging that the fintech giant’s anti-ruling rules stifle competition against lower-cost payment platforms like Stripe and Shopify.
And in May 2022, we reported that PayPal had laid off dozens of employees from its headquarters in San Jose.
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