Digital payments firm PayPal Holdings announced it is planning to cut 7 percent of its workforce, or about 2,000 employees, to slash cost.
PayPal had earlier reported 11 percent increase in revenues to $6.85 billion with net income of $1.3 billion (+22 percent) in Q3 2022. PayPal’s online payment volume rose 9 percent to $337 billion in Q3. PayPal is expecting 7 percent rise in revenue to $7.73 billion in Q4 2022.
In November, PayPal had cut its annual revenue growth forecast in anticipation of a broader economic downturn. PayPal earlier said it did not expect much growth in its U.S. e-commerce business during the holiday quarter of 2022.
“While we have made substantial progress in right-sizing our cost structure, and focused our resources on our core strategic priorities, we have more work to do,” said PayPal’s Chief Executive Dan Schulman in a news statement.
“Similar to other tech companies, PayPal is seeking to position itself financially and strategically, bracing for an economic slowdown,” said Moshe Katri, analyst at Wedbush.
