PYPL•PYPL•The firm has outlined extensive cost-saving measures this year under newly appointed CEO, Enrique Lores, as it seeks to sharpen its competitive position in the crowded payments market.
PayPal has set a target of achieving $400 million in cost savings by year-end and at least $1.5 billion over the next two to three years.
Among the initiatives are plans to reduce organizational layers, improve productivity and integrate AI and automation across the business.
It joins a growing list of U.S. companies that have announced job cuts this year.
The rise of fintech rivals and big-tech players such as Apple and Google in payments has chipped away at PayPal's market share in recent years, weighing on its stock. The company's shares are down roughly 82% from its 2021 record high.
In its latest earnings report, PayPal raised its full-year profit forecast after quarterly results topped Wall Street expectations.
The turnaround initiatives come against a backdrop of takeover speculation around the company. Reuters reported in July, citing sources, that a consortium including payments company Stripe and private equity firm Advent had made a $53 billion offer to buy PayPal. The suitors are no longer pursuing the deal, according to media reports in late August.
PayPal has cut roughly 220 jobs in India as part of the payments firm's broader, multi-year turnaround plan laid out earlier this year, a person familiar with the matter told Reuters on Thursday.
"The recent staffing changes are part of our previously announced multi-year transformation to simplify our global operations, strengthen execution, and position the company for long-term growth," a PayPal spokesperson said in an emailed statement.
