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Activist investor Elliott Investment Management is building a stake in PayPal Holdings Inc, as it plans to push the fintech giant to ramp up its cost-reduction efforts, Bloomberg News reported, citing people familiar with the matter.

Elliott may eventually become one of the PayPal’s five largest shareholders, according to the report on Tuesday.

The report comes after PayPal revealed earlier this year that it had initiated a strategic reduction of its global work force, and said it expected to save about $260 million in annualized employee-related costs, as it looked to manoeuvre through challenging macroeconomic conditions.

The company had also withdrawn its medium-term outlook at the time and lowered its full-year profit forecast, signalling that payments volumes could take a hit from surging inflation and the conflict in Ukraine.

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.

The Wall Street Journal first reported Elliott’s stake in PayPal earlier on Tuesday, but said the size of the ownership could not be determined.

PayPal and Elliott did not respond to Reuters’ requests for comments outside regular business hours.

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