PayPal shares fall 8% on AI push and planned staff cuts
Updated
Updated · The Wall Street Journal · May 5
PayPal shares fall 8% on AI push and planned staff cuts
14 articles · Updated · The Wall Street Journal · May 5
CEO Enrique Lores, who joined in March, said PayPal was lagging rivals and aimed to remove unnecessary management layers over the next two to three years.
A person familiar with the matter said the company plans to cut 20% of staff, or about 4,500 jobs, as it boosts AI spending and seeks technology leadership.
The move is part of a turnaround effort targeting $1.5 billion in savings, after weak guidance and a falling stock price increased pressure to modernise PayPal's platform.
With rivals dominating, can PayPal's massive AI bet reclaim its market leadership, or is it too little, too late for the payments giant?
As PayPal builds an ad business on user data, can it rebuild trust and escape its 'value trap' reputation among investors?