Dan Schulman: A New Era for PayPal as CEO Retires
PayPal Holdings Inc. announced that its CEO, Dan Schulman, will step down from his position at the end of the year as the company faces challenges of decreased growth on its platforms. Schulman, who is 65 years old, will remain involved with the board while a search firm is enlisted to find a replacement.
“I am incredibly proud of everything we have achieved, but as I grow older, I also want to dedicate more time to my passions outside of work, which could range from politics to non-profits, traveling, and academia,” Schulman stated in an interview. “There is so much I want to do.”
In recent times, PayPal has been dealing with a decline in spending on its platforms, largely due to supply chain disruptions that have impacted e-commerce and inflation that has caused consumers to cut back on shopping. To address these challenges, Schulman has pledged to enhance operational efficiency, which involves increasing revenue at a faster rate than expenses.
As part of its efforts, the firm announced its intention to lay off 2,000 employees, which equates to roughly 7% of its total workforce, last week. The restructuring is projected to incur about $100 million in charges during the current quarter, the company stated on Thursday.
Despite this, the company anticipates that these cost-saving measures will result in a boost to its adjusted profits for the year, increasing by 18% to $4.87 per share, surpassing the expected $4.75 estimated by analysts.
According to Schulman, “I wanted to ensure PayPal was in a strong position before I stepped down. Last year was challenging, but we are well-positioned to deliver a solid 2023.”
The company’s shares experienced a 2.3% drop in extended New York trading after the announcement, having closed at $78.42 on Thursday and having risen by 10% this year. Schulman joined PayPal in 2014 and played a crucial role in its initial public offering the following year.