Big tech seems to have been doing layoffs left and right due to the global economic downturn and upcoming challenges in this area. Amazon let go of 18,000 workers, Microsoft reduced its workforce by 10,000, Google laid off 12,000, and IBM eliminated 3,900 roles, among many other firms. PayPal has now become one of the latest firms to join this growing list.
PayPal has announced that it is laying off 2,000 employees in a staggered manner in the coming weeks. This figure constitutes about 7% of its workforce. CEO Dan Schulman has assured those impacted that they will be offered generous packages and support that they require in this transition. Schulman noted that:
Over the past year, we made significant progress in strengthening and reshaping our company to address the challenging macro-economic environment while continuing to invest to meet our customers’ needs. While we have made substantial progress in right-sizing our cost structure, and focused our resources on our core strategic priorities, we have more work to do. We must continue to change as our world, our customers, and our competitive landscape evolve.
Bloomberg reports that the payments company is laying off employees and shuttering physical offices in a bid to lower operating expenses, something that the CEO has been very vocal about recently.
Like most tech companies, PayPal saw increased economic growth during the pandemic leading as people started shopping online more frequently, using PayPal as their payment platform. Now that shopping patterns are returning to normalcy, the firm is reducing its headcount in response.