PayPal to trim workforce by 9% over 2024 in bid to streamline business

PayPal Job Cuts:
- PayPal to cut approximately 9% of its workforce throughout 2024.
- Expected impact on around 2,500 jobs.
- CEO Alex Chriss confirms the decision in a team-wide letter.
- Reductions will occur through both direct cuts and the elimination of open roles.
- Aim is to “right-size” the business, emphasizing a focus on reducing complexity and duplication.
- Goal is to maximize reach, scale, and resources for profitable growth.
- Chriss acknowledges the challenging decisions for the company’s transformation in 2024.
Previous Layoffs:
- Comes almost a year after PayPal’s announcement of laying off about 2,000 employees in February 2023.
- Previous layoffs attributed to a “challenging macro-economic environment.”
Industry Trends:
- Occurs amid a broader trend of job cuts in the financial services industry.
- Other companies like Citigroup, US fintech Brex, UK firm Abrdn, and Lloyds Banking Group have also announced staff reductions recently.
Leadership Changes:
- Leadership changes in PayPal, with Alex Chriss taking over as CEO in August.
- Further additions to the C-suite with Archie Deskus as CTO and Jamie Miller as CFO in November.
Context:
- Reflects the company’s ongoing efforts to adapt to industry challenges and drive innovation.
- Marks a year of change for PayPal, with a focus on necessary decisions for future success.