Paypal has proposed cutting costs by $900 million, primarily through project delays, real estate consolidation, and layoffs. Additionally, Company unveiled a new $15 billion stock buyback program.
PayPal’s about-face on costs and the new stock repurchase plan was applauded by investors, and shares rose by 9%.
However, other experts are concerned that Company cost reductions are so significant that long-term revenue growth may be in jeopardy, posing a significant challenge for the business.
The Company’s cost-cutting measures follow another hard quarter for the company.
According to recent reports, Company has changed its strategy to placate activist investor Elliott Management, which has revealed a $2 billion position in the payments industry giant.
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