The PayPal job cuts follow a $2-billion investment in the company last year by Elliott Investment Management, an activist investor that often pushes companies to increase profitability in the interest of boosting stock prices. The value of PayPal’s shares have declined since mid-2021 as it missed growth goals and pivoted to new strategies.
Schulman said the company’s plans would include cost cuts after reporting a second-quarter loss in August 2022. PayPal targeted $900 million in expense savings for last year aimed at rolling into additional savings of $1.3 billion this year. “We are meaningfully reducing our cost structure,” Schulman said on that earnings webcast last August.
