PayPal adds another round of layoffs

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Set us as preferred PayPal, the digital payments company, is laying off 251 employees at its San José headquarters in another round of layoffs, according to a recent government filing.The cuts are a part of a multiyear restructuring plan led by CEO Enrique Lores to turn around the company’s performance and cut costs while investing more in AI integration.Business Stripe and Advent International reportedly made a bid to take over the payments company for $60.50 per share, valuing the company at roughly $53 billion.The company plans to cut 20% of its workforce over the next two to three years, or more than 4,500 jobs to save around $1.5 billion in costs, according to Bloomberg.PayPal posted net of $1.26 billion in the second quarter, down 12% from the same period a year ago.The company’s shares have fallen more than 15% over the last 12 months and have been trading around $55.A slowdown in PayPal’s branded checkout and rising competition from rivals like Apple Pay and Google Pay are among PayPal’s biggest challenges, analysts and company executives have said.The company is investing $400 million to improve and grow branded checkout this year.PayPal has attributed the slowdown partly to the “K-shaped economy,” in which wealthier Americans see their incomes rise while lower-income Americans struggle financially.

PayPal has many middle-income customers and some lower-income customers, so a pullback in spending affects use of its payments platform.In February, PayPal let go of its previous chief executive, who had been working to fix the problem, but the company said his “pace of change and execution” over two years didn’t meet the board’s expectations.The company, which was founded under a different name in 1998, has seen growth in other areas.It owns Venmo, a payments platform especially popular among young...