CEO Alex Chriss of the payment company announced on Tuesday that an additional 9% of the company’s workforce, totaling about 2,500 positions, will be cut. This decision comes after PayPal’s announcement of reducing its headcount by approximately 2,000 employees in January last year.
Chriss explained in a memo that these job cuts are necessary to ensure the company’s size is aligned with its objectives of delivering quality service to customers while driving profitable growth. He also emphasized the company’s commitment to investing in areas expected to fuel future expansion.
The layoffs will affect both existing positions and the elimination of open and future job listings for the year 2024, Chriss stated. Over the past year, PayPal’s stock has seen a decline of more than 20%.
Chriss, who previously held executive positions at finance firm Intuit, took on the role of President and CEO in September 2023. Last week, in a significant announcement, he unveiled plans to introduce a series of AI-powered tools aimed at revolutionizing commerce.
One of the notable products is “smart receipts,” utilizing AI technology to provide personalized recommendations to customers through email receipts. Chriss described these initiatives as marking a new era for PayPal, emphasizing the potential of AI in leveraging consumer data to enhance services.
In an interview with Reuters, Chriss highlighted the importance of AI in utilizing consumer purchase data to benefit both customers and merchants.
PayPal’s decision to downsize its workforce reflects a broader trend among companies in 2024, with various organizations, including Amazon, Google, and UPS, also announcing plans for job cuts.
