online payment service
Paypal: Revenue and profit increased – boss resigns
Paypal’s profit forecast for the current financial year is a positive surprise. photo
© Jeff Chiu/AP/dpa
The company announced surprisingly good figures and its profit forecast after the US stock market closed. Nevertheless, there are some changes at Paypal this year – especially in the executive suite.
The online payment service PayPal grew significantly at the end of the year despite fears of inflation and recession. In the fourth quarter, revenues rose by seven percent year-on-year to $7.4 billion (EUR 6.9 billion), as the former eBay subsidiary announced yesterday after the US stock market closed in San Jose.
Net income increased by 15 percent to $921 million. The result exceeded the expectations of Wall Street experts. The profit forecast for the current financial year also surprised positively. That was well received by investors, and the share price jumped by more than five percent in the after-hours trading.
Lots of layoffs in the tech industry
At the same time, PayPal announced the resignation of CEO Dan Schulman at the end of the year. It is not yet clear who will succeed him. Schulman has held the top post since Paypal’s 2015 spin-off from online trading platform eBay.
Paypal announced last week that it would be laying off around seven percent of its employees – around 2,000 employees – in view of the difficult economic environment. A number of companies in the tech industry – including Facebook’s parent company Meta, Amazon, Twitter and Alphabet – have decided on major rounds of layoffs in recent weeks and months.