On Wednesday, Activist investor Elliott Investment Management builds a stake in PayPal Holdings Inc, planning to push the fintech giant to escalate its cost-reduction efforts, Bloomberg News reported.
It may eventually become one of PayPal’s five largest shareholders.
The report comes after PayPal revealed earlier this year that it initiated a strategic reduction of its global workforce, and said that it expected to save about $260 million in annualized employee-related costs, as it looked to exercise through challenging macro-economic conditions.
The company has also withdrawn its medium-term outlook at the time and lowered its full-year profit forecast, signaling that payments volumes could take a hit from surging inflation and the conflict in Ukraine.
According to Reuters, The payments behemoth was among the big winners of the COVID-19 pandemic as more people used its services to shop online and pay bills to avoid stepping out. However, the company’s shares have plummeted more than 60% so far this year.
Earlier on Tuesday, The Wall Street Journal first reported Elliott’s stake in PayPal but said the size of the owner could not be determined.
