---
title: "PayPal says volume growth slowed; CEO Schulman to retire"
description: "PayPal Holdings’s volume growth on its platforms slowed even faster than expected in the final three months of last year, yet another sign that consumer spending continued to stumble even during the normally busy holiday season. The firm also said CEO Dan Schulman plans to retire at the end of the year."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2023-02-10-paypal-says-volume-growth-slowed-ceo-schulman-to-retire/"
published: "2023-02-10T05:51:18"
lang: "en-ZA"
word_count: 326
---

# PayPal says volume growth slowed; CEO Schulman to retire

> PayPal Holdings’s volume growth on its platforms slowed even faster than expected in the final three months of last year, yet another sign that consumer spending continued to stumble even during the normally busy holiday season. The firm also said CEO Dan Schulman plans to retire at the end of the year.

By Bloomberg · Published 10 February 2023, 07:51 SAST

## Key points
- PayPal, who recently announced the dismissal of 2,000 employees in an effort to trim costs, reported that total payments volume climbed 9% to $357.4-billion in Q4 of 2022, missing estimates. Despite this, CEO Dan Schulman said the company has seen a year of transformation and will continue to focus and streamline their business in 2023. Shares fell after the announcement but have still grown 10% this year. Expenses for the quarter were lower than expected and the company remains optimistic about 18% profit growth this year. With Visa and Mastercard also facing slower purchase volumes, PayPal's results are reflective of wider market trends.
- PayPal's total payments volume climbed 9% to $357.4-billion, missing analyst estimates.
- The company has set its sights on trimming costs and said adjusted profit for the year would climb 18%.
- PayPal announced it would dismiss 2,000 employees and record $100-million in charges in the current quarter.
- Shares fell 1.4% after the announcements, but have risen 10% this year.

## Content

Total payments volume climbed 9% to $357.4-billion, missing the $365.4- billion average estimate of 23 analysts compiled by Bloomberg. Still, the company has set its sights on trimming costs and said adjusted profit for the year would climb 18% to $4.87 a share, exceeding the $4.75 analysts currently expect.

“2022 was a transformative year for PayPal,” Schulman said in a statement announcing fourth-quarter results. “We invested in our platform to better serve our customers, while focusing and streamlining our business. We will continue this work throughout 2023.”

PayPal has spent much of the last year contending with a slowdown in growth in spending on its platforms, as supply-chain shocks crimped e-commerce and consumers dealt with historic levels of inflation. Schulman has vowed to improve operating leverage, or the ability to grow revenue faster than expenses.

To that end, the company said last month it would dismiss 2,000 employees, or about 7% of its workforce. On Thursday, PayPal said it would record $100-million in charges tied to that restructuring in the current quarter.

PayPal shares fell about 1.4% at 5.55pm in extended New York trading after the announcements. They ended regular trading at $78.42, up about 10% this year.

Schulman, 65, joined the company in 2014. He’ll remain on the board and will help ensure “a smooth leadership transition” during a search for the next CEO, the company said in a separate statement.

The company’s results mirror that of Visa and Mastercard, which both saw purchase volumes on their cards climb less than expected in the final three months of the year.

In all, PayPal’s revenue for the fourth quarter climbed 9% to $7.4-billion, in line with the average of 42 analyst estimates compiled by Bloomberg. Expenses climbed to $6.14-billion, below expectations.

“Our 2022 results demonstrate the ongoing progress we are making to optimise our cost structure while continuing to invest in our high-conviction initiatives,” Gabrielle Rabinovitch, PayPal’s acting chief financial officer, said in the statement. **BM/DM**