PayPal, which is a major United States, based payment processor firm is reportedly shutting its commercial real estate office spaces in San Francisco’s Financial District, located at 425 Market St with its subsidiary Xoom arm. The firm plans to maintain its headquarters in San Jose.

As per report, the firm will be closing its offices in downtown San Francisco with its subsidiary Xoom arm which was the division responsible for international online money transfer technology and services. PayPal has several job listings for San Francisco as well as 17 other locations across the United States and 32 international locations when this publication was made. Although PayPal has not officially confirmed the decision. Only a statement was provided that refers to a larger shift to remote work. Payment Processing subsidiary Xoom signed a lease for 79K SF at 425 Market St Compstak notes that Xoom first leased space at the building in 2013, when MetLife and the Government Pension Fund of Norway acquired it. The firm acquired Xoom in 2015.

The closure of PayPal firm was targeting at the company evaluating its “global office footprint’ according to a spokesperson from PayPal. As per another person at PayPal, displaced San Francisco employees would now get the option of working remotely. When the company facing tough time financially this move took place. This week company’s stock hit a 52-week due to anticipation of its quarterly earning reports.

First quarter earnings report of 2022 released by the firm PayPal on Wednesday, revealed that the firm had a total payment volume of $323 billion. Roughly $6.5 billion amounting to the transaction revenues which also include fees for providing facility for purchase and sale of cryptocurrencies.

The payment firm has made inroads into the digital asset space by exploring the development of a stablecoin since announcing it would accept cryptocurrency payments in 2021. Also in February, PayPal established an advisory council to support efforts related to crypto, blockchain, and digital currencies.

Due to staff willing to accept remote working in this pandemic situation, many major crypto and tech companies that were in San Francisco Bay Area closing. In May 2021 crypto exchange Coinbase closing its San Francisco headquarters in 2022 as part of its commitment to “being remote first.” in April Kraken CEO Jesse Powell said, the firm had shut down its global headquarters in the city by the bay following reports several of its employees had been “attacked, harassed and robbed on their way to and from the office.”

Indrani bose

CBW - External Analyst

INDIA