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PayPal is set to reduce its global workforce by approximately 9%, equating to around 2,500 jobs, according to an internal letter sent by CEO Alex Chriss. The decision is part of a broader effort to enhance focus, efficiency, and innovation within the company.
In the memo addressed to employees, Chriss emphasized the need for a growth-oriented organization that acknowledges both strengths and areas requiring improvement. The company aims to expedite execution, prioritize customer needs, and foster a culture of innovation. This move is aligned with PayPal’s broader strategy to streamline operations, leverage automation, and consolidate technology to minimize complexity and redundancy.
The job cuts will impact existing roles as well as planned hires and will be implemented gradually over the course of the year. Chriss affirmed that PayPal will continue to invest in strategic areas to foster growth and ensure profitability.
The announcement follows last week’s introduction of artificial intelligence features by PayPal, marking the inaugural major initiative under Chriss, who assumed the role of CEO in September 2023. These AI features include a streamlined checkout experience, AI-powered merchant recommendations, and a comprehensive overhaul of the consumer app, symbolizing the initiation of PayPal’s “next chapter.”
Chriss expressed optimism about the future and the company’s potential to create substantial value for employees, customers, and shareholders. The workforce reduction is considered a necessary step to align PayPal’s resources and strategies for a stronger impact in the evolving digital payment landscape.
Affected employees will be notified by the end of the week, and the company aims to provide support, respect, and compassion during this period of transition. The decisions will comply with applicable legal consultations and reflect PayPal’s commitment to upholding its values.