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PayPal Holdings Inc is planning to cut 7 percent of its workforce, or about 2,000 employees, to rein in costs to ride out the downturn.
According to PayPal's CEO Dan Schulman, while the company has made substantial progress in right-sizing its cost structure, and focused its resources on core strategic priorities, it has “more work to do."
PayPal is seeking to position itself financially and strategically, bracing for an economic slowdown, said Wedbush analyst, Moshe Katri.
In November, PayPal reduced its annual revenue growth forecast in anticipation of a broader economic downturn and did not expect much growth in its US e-commerce business in the holiday quarter.
