PayPal Cuts Staff to Reduce Rising Costs

PayPal has laid off employees from risk management and operations this week, with the company trying to cut down costs to shore up profits as spending on its platform has stagnated in the past quarters.

The e-wallet firm has laid off dozens of staff members in Chicago, Nebraska, and Arizona, following a cut of 80 employees at its San Jose headquarters.

The move follows slower growth in the firm’s first-quarter earnings, with net income plunging by 54%. Spending on the platform grew just 15% during the period, the slowest in over five years.

PayPal said that it will save $260 million a year by cutting staff.

“PayPal is constantly evaluating how we work to ensure we are prepared to meet the needs of our customers and operate with the best structure and processes to support our strategic business priorities as we continue to grow and evolve,” PayPal told Bloomberg in a statement.

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