PayPal has cut around 220 jobs in India as the payments giant presses ahead with a multi-year turnaround plan aimed at lowering costs, simplifying its operations and restoring growth.
According to Reuters, PayPal also confirmed the staffing changes, saying they were part of its previously announced transformation of the business.
The India layoffs come as PayPal steps up a wider cost-cutting drive under CEO Enrique Lores. The company is targeting $400 million in savings by the end of this year and at least $1.5 billion over the next two to three years.
AI And Automation At Core Of PayPal Reset
PayPal's turnaround plan includes reducing organisational layers, improving productivity and expanding the use of artificial intelligence and automation across its operations.
The company is facing growing pressure in an increasingly crowded payments market.
Fintech competitors and technology giants such as Apple and Google have expanded their presence in payments, putting pressure on PayPal's market position.
That pressure has also hit investor sentiment. PayPal shares have fallen roughly 82% from their 2021 record high.
The company, however, recently raised its full-year profit forecast after quarterly results came in above Wall Street expectations.
Also Read: Paypal Shares Tank 16% Pre-Market As Advent, Strike Drop $50-Billion Takeover Bid
Takeover Interest Adds Another Twist
PayPal's restructuring is also unfolding against a backdrop of takeover speculation.
In July, Reuters reported that a consortium involving payments company Stripe and private equity firm Advent had offered more than $53 billion to acquire PayPal.
The group has since walked away from the pursuit, according to reports in late August.
The latest job cuts therefore come at a pivotal moment for PayPal.
With competition intensifying and investors demanding stronger execution, the company is betting that lower costs, greater automation and a leaner structure can help rebuild its position in the global payments industry.
Also Read: PayPal On Sale: Stripe, Advent Make Joint Bid For $53 Billion, Says Report
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