Photo credit: Paypal official Twitter/X account
NYReaders - The wave of layoffs in fintech companies to lay off employees seems to be continuing. The latest one is Paypal, which has disclosed its plan to cut 9,500 jobs, representing 9% of its global workforce.
PayPal CEO Alex Chriss revealed the board’s plan in an internal letter to employees which was leaked to media. The decision was made after months of thorough study on the growth and the move to unlock the true potential of the company.
“During the last few months, I have spent as much time as possible with as many of you as possible to learn about our company’s great strengths, as well as where we need to move faster, where we need to change, and what we need to do to instill a culture of innovation that returns our company to the true position of strength it deserves,” he said.
“Specifically, across our organization, we need to drive more focus and efficiency, deploy automation, and consolidate our technology to reduce complexity and duplication. We have started on that journey, but there is a lot of work to do – and 2024 marks a year of change, including some difficult but necessary decisions to get us to where we need to go,” he said.
“Today (31/01), I am writing to share the difficult news that we will be reducing our global workforce by approximately 9% through both direct reductions and the elimination of open roles over the course of the year,” he said in an internal memo.
“We are doing this to right-size our business, allowing us to move with the speed needed to deliver for our customers and drive profitable growth. At the same time, we will continue to invest in areas of the business we believe will create and accelerate growth,” he added.
Recently, PayPal announced a plan to step into artificial intelligence features. The plan marked the first major announcement under Chriss, who joined as CEO in September from Intuit. The AI features include a faster checkout experience, AI-powered merchant recommendations for customers and a consumer app overhaul. (*)