PayPal's rocky road ahead warrants more cost cuts, Wall Street says


FILE PHOTO: The PayPal app logo seen on a mobile phone in this illustration photo October 16, 2017. REUTERS/Thomas White/Illustration

(Reuters) - PayPal Holdings Inc will need to cut more costs with its payment volumes expected to shrink as customers batten down the hatches to prepare for a potential economic downturn, said Wall Street analysts, warning of a tough year ahead.

The San Jose, California-based digital payments company said on Tuesday it would lay off 7% of its workforce, or around 2,000 employees, a move in line with analyst expectations and the firm's previous commitment to rein in costs.

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