willington

PayPal Holdings Inc. will reduce its workforce by about 9% as Chief Executive Officer Alex Chriss, who took over in September, grapples with rising competition, profit pressures and a raft of analyst downgrades.

In a letter to staff on Tuesday, Chriss said the decision was made to “right-size” the company through both direct cuts and the elimination of open roles throughout the year. Affected staff will be notified by the end of the week, according to the letter, which was seen by Bloomberg News.

PayPal, which employed around 29,900 workers at the end of 2022, announced a similar round of cuts last January. The latest move will affect about 2,500 workers.

Eliminating jobs will allow the firm to “move with the speed needed to deliver for our customers and drive profitable growth,” Chriss said in the letter. “At the same time, we will continue to invest in areas of the business we believe will create and accelerate growth.”

Shares of the payments giant have plunged more than 20% over the past year as earnings faltered and the company lowered its full-year guidance for adjusted operating margin. PayPal named Chriss last year to replace Dan Schulman.

PayPal was an early disrupter in the payments industry, but rivals including Apple Inc. and Zelle have since crowded the space, leaving PayPal struggling to keep pace. At least four analysts downgraded the stock this month, citing a range of concerns from rising competition to pressure on profitability.

Chriss said on PayPal’s third-quarter earnings call that the firm’s “cost base and complex structure” had slowed progress, an issue he plans on addressing to boost the firm’s operating leverage. The San Jose, California-based company is set to report fourth-quarter results next week.

“There hasn’t been a lot to celebrate” over the past few years, Chriss told CNBC earlier this month.

Since Chriss took the helm, he’s revamped PayPal’s leadership roles and made clear

that he plans to streamline what grew into a bloated business during the pandemic.

Block Inc., which offers the Cash App and Square payments services, began cutting jobs Tuesday as part of its goal to trim the workforce to 12,000 by the end of the year. Headcount as of the end of the third quarter of last year was just over 13,000, according to the firm.

We live under a two-tier "justice" system.

"There is a group the law protects but does not bind. And there is a group the law binds but does not protect."

I recommend an old and obscure book by a prolific contactee and psychic Ted Owens, called "How to contact space people." It's on the internet. If you have trouble locating it you can dm me (I've never used dm on Lemmy, but I assume it works fine).

You give me hope, thank you.

OK, you're a hardy soul then. I support your efforts. 💫

You're telling me you don't fill up your car?

Every single gas station in the US of A uses a sub-penny pricing scheme. I have not seen a sigle exception yet.

So you never patronize any business that uses the .99 and .95 pricing schemes? Gas stations are the worst offenders with their sub-penny pricing schemes.

Practically all ads exaggerate to the point of lying. "Luxury apartment for rent" <-- just a run of the mill apartment, not luxurious. Etc.

Business culture is a culiure of lies.

And what's going to protect the lens from the lunar dust?

They might need a diamond lens or something.

"Increase productivity by 20% will ~reduce price~ increase profits by?"

In capitalism businesses have only one purpose. "To last long" ain't it. The biggest owners and their chief lieutenants must make as much money as is humanly possible. Sometimes that means a long term strategy, and sometimes it doesn't.

These robots are a hazard and a nuisance to the pedestrians. I won't shed a single tear for these tincans on wheels. I would not order one of these either.

It still does matter because as long as enough people keep abandoning mature (rotten) corporations for the younger ones, the right and unignorable signal will be sent.