(Reuters) -Payments firm PayPal Holdings will cut about 2,500 jobs this year, Bloomberg News reported on Tuesday citing a letter from CEO Alex Chriss to staff that it reviewed.
In a letter to staff on Tuesday, Chriss said the decision was made to “right-size” the company through both direct cuts and the elimination of open roles throughout the year, according to the report.
The company did not immediately respond to a Reuters request for comment.
In November, newly appointed CEO Chriss said he expects 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 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.
(Reporting by Manya Saini in Bengaluru; Editing by Shilpi Majumdar and Krishna Chandra Eluri)