PayPal layoffs should yield operating leverage, says Monness Crespi

Following news reports that PayPal announced companywide layoffs today that Bloomberg pegs at about 2,500 employees, Monness Crespi notes that this reported figure surpasses last year’s roughly 2,000 layoffs and would bring headcount to about 25,000. The firm, which says such a headcount reduction should serve as “a meaningful source of operating leverage,” calls the reported move a “promising first step to driving profitable growth” and keeps a Buy rating and $95 price target on PayPal shares.