PayPal is reportedly weighing cuts of up to 20% of its workforce as the payments giant ramps up cost-cutting efforts under new leadership.
The potential layoffs come as PayPal faces mounting pressure on profitability despite continued revenue growth.
FOX Business reached out to PayPal for comment.
Bloomberg and The Wall Street Journal reported that the company could cut as much as one-fifth of its staff as part of a broader restructuring push.
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PayPal reported first-quarter revenue of $8.35 billion, up 7% from a year earlier, while total payment volume rose 11% to $464 billion.
Net income fell to $1.11 billion from $1.29 billion a year earlier, though adjusted earnings of $1.34 per share beat expectations.
The company expects adjusted earnings to decline about 9% in the current quarter and maintained a cautious full-year outlook.
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New CEO Enrique Lores, who took over in March, is pushing to streamline operations and cut costs, including through greater use of artificial intelligence, Reuters reported.
PayPal said those efforts are expected to generate roughly $1.5 billion in savings over the next two to three years, which it plans to reinvest into growth.
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The company has been grappling with intensifying competition from Big Tech and newer players such as Klarna and Stripe, while growth has cooled following a pandemic-era surge in digital payments, according to Reuters.
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PayPal said it is working to “simplify” its organization and improve efficiency, with disclosures pointing to workforce reductions as part of broader restructuring efforts.
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