---
title: "Analysts flag risks as PayPal pursues $1.5B cost cuts"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286139014.md"
description: "PayPal is undergoing a major restructuring, reorganizing into three units and cutting about 20% of its workforce to save $1.5 billion over two to three years. Despite beating revenue and EPS forecasts in Q1, the company saw a 14% decline in net income and falling operating margins, raising investor concerns. Analysts express caution due to slow growth and regulatory probes, making the turnaround uncertain even with a lower stock valuation."
datetime: "2026-05-12T17:49:18.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286139014.md)
  - [en](https://longbridge.com/en/news/286139014.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286139014.md)
---

# Analysts flag risks as PayPal pursues $1.5B cost cuts

Major restructuring: PayPal will reorganize into three units and cut about 20% of its workforce over two to three years to save $1.5 billion. Mixed Q1 results: Revenue and EPS beat forecasts, but operating margins fell and net income declined 14%, raising investor concerns. Analyst caution: Slow revenue and EPS growth, plus regulatory probes, make the turnaround uncertain despite a cheaper stock valuation.

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