A pioneer in online payment services, the American service provider PayPal is once again in turmoil.
The group wants to cut around 9% of its workforce, or just under 2,500 positions.
The announcement was made in an internal letter from managing director Alex Chriss, posted on the group's website.
This decision comes a year, almost to the day, after the launch of a first wave of layoffs, which affected 7% of staff, or 2,000 people, at the time.
This time, however, this new social plan should not lead to outright dismissals.
In the letter, Alex Chriss justified this reorganization by the need for PayPal to gain “efficiency” and “automate”, as well as “reduce complexity and duplication”.
The group now faces fierce competition in the online payments sector, notably from Google Pay and Apple Pay, which rely on groups incomparably larger and more diversified than PayPal.
Insufficient margins
In addition, the group is recording a sort of normalization of its activities after experiencing euphoria in 2020 and 2021 thanks to the acceleration of online sales during Covid.
As a result, investors have long been concerned about its margins, which are considered insufficient.
In the third quarter of 2023, the last for which the group published its accounts, the operating margin contracted compared to the same period of the previous year.
In electronic trading after the close of the New York Stock Exchange, PayPal lost 1.15%.