PayPal, listed on the NASDAQ as PYPL, has revealed plans to reduce its workforce by approximately 7%, or 2,000 jobs. This comes amidst the impending macroeconomic turbulence and makes PayPal one of the latest companies to announce layoffs.
Company CEO Said, “These reductions will occur over the coming weeks, with some organizations impacted more than others. We will treat our departing colleagues with the utmost respect and empathy, provide them with generous packages, engage in consultation where required, and support them with their transitions.”
Currently, we consider PayPal’s stock to be undervalued, given the bearish sentiment that is disproportionate to its cheap fundamentals both in absolute and relative terms. As we examine the impact of these cost savings on the company’s long-term valuation and future earnings, we believe that its efficient operation as a more mature company makes it too good to ignore. Thus, ahead of earnings, we recommend a cautious buy for the stock.