PayPal has terminated its security R&D team that focuses on emerging technologies, according to an Insider report, citing anonymous sources. The source added that R&D won’t be the only unit affected, as the payments behemoth leads an internal restructuring to cut spending.
“There’s a lot of restructuring, a lot of refocusing for the company. As you know, the last quarters haven’t been really great from a financial perspective. I think there’s a lot of tightening going on in the company,” said the source, who asked to remain anonymous for fear of retribution. The source added that employees in other advanced security topics, such as threat intelligence, were also let go.
A PayPal spokesperson confirmed the emerging technologies research team was laid off, adding that it “was not a near-term business.”
The team fell under the purview of the information security org, which has also seen personnel changes recently. John Nai, PayPal’s CISO since 2014, retired this February and was replaced by Assaf Keren, who stepped into the role in January, according to LinkedIn.
“As you have a new CISO, there’s always a lot of reorganization at big companies,” the source said. “Obviously there’s more going on because of the overall market, the overall economic conditions,” they added.
PayPal stock has plunged to $110 per share, from an all-time high of $308 in July 2021. The company amassed 122 million new active users in the past two years, CEO Dan Schulman said during the company’s fourth-quarter earnings call in February.
PayPal provided Insider with the following comment:
“PayPal is constantly evaluating how we work to ensure we are prepared to meet the needs of our customers and operate with the best structure and processes to support our strategic business priorities as we continue to grow and evolve. The company remains committed to delivering great products and services for our customers. Any steps related to aligning our workforce would be done responsibly and would provide a level of benefits, resources, notice, and support that aligns with our values.”