A Payments Company Now Announces Unexpected Layoffs

February 1, 2024

A payments company now announces unexpected layoffs of its global workforce, affecting 2,500 jobs, according to the CEO.

PayPal plans to cut a whopping 2,500 roles, which equates to 9% of the company’s global workforce, TheGuardian reports.

In a letter to staff sent on Tuesday, the newly appointed CEO Alex Chriss, said the decision was made to “right-size” the company through both direct cuts and the elimination of open roles throughout the year.

The staff that will be affected are expected to be notified by the end of the week.

“We are doing this to right-size our business, allowing us to move with the speed needed to deliver for our customers and drive profitable growth,” Chriss wrote in the letter.

The company did not immediately respond to a request for comment.

In November, Chriss said he expected to increase revenue outside of purely transaction-related volume and pledged to turn the fintech firm leaner by reducing its cost base.

Though the announcement had helped rally the stock after third-quarter results, analysts have remained focused on PayPal’s margins in recent quarters.

The company’s low-margin business products have risen strongly, while growth in its branded products has slowed due to increased pressure from competitors such as Apple.

Last week, the payments firm announced it was launching new artificial intelligence-driven products as well as a one-click checkout feature.

Meanwhile, rival Block, led by the Twitter co-founder Jack Dorsey, also began to cut jobs this week as part of its previously disclosed plans to trim headcount and reduce costs.

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Also Read: A Massive Furniture Company Now Lays Off 1,650 Employees

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The second largest US stock exchange now makes unexpected job cuts as it integrates software provider Adenza.

Nasdaq is set to cut hundreds of jobs as it integrates recently acquired software provider Adenza into its systems and aims to consolidate operations and minimize redundancies across the combined businesses, Bloomberg reported Tuesday.

The New York-based company may shed some roles and reallocate others while it integrates Adenza’s New York and London offices into its own locations as part of its global streamlining process, people familiar with the matter told the publication.

Following the acquisition last year, Nasdaq started a review of its offices and organizational structure to optimize certain teams and technology.

While this strategy could still change, the initial work has identified opportunities to pare down some roles to avoid duplication, though the final number impacted has not yet been determined, reports BankingDive.

As of September 30, Nasdaq had approximately 6,590 employees, while Adenza had 2,000 before the deal was announced in June, Bloomberg noted.

The second-largest stock exchange in the U.S. has leaned more toward technology rather than on revenue from volatile market data and transactions under its CEO Adena Friedman.

In a bid to move beyond its roots as a stock and bonds exchange and diversify its technology and intellectual property portfolio, Nasdaq acquired Adenza in a $10.5 billion deal — its biggest-ever deal that expanded its financial technology footprint.

The deal closed in November, giving Thoma Bravo LLC, Adenza’s parent company, a 14.9% stake in Nasdaq and making it the company’s second-highest shareholder, according to Bloomberg.

Thoma Bravo and Calypso Technologies merged with AxiomSL and created Adenza in 2021.

The company specializes in selling regulatory, compliance and risk management software to financial services institutions.

A representative for Nasdaq declined to comment to Bloomberg.

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Also Read: A Massive US Bank is Now Closing Credit Cards

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