September 13, 2023
Economy International

PayPal to Layoff 7% of Workforce Amid Challenging Economic Environment

PayPal has announced plans to lay off around 7% of its total workforce, or around 2000 employees, in response to the "challenging macroeconomic environment". The layoffs will not be immediate and will occur gradually over time, with a certain percentage of employees being let go each week. Some of PayPal's subsidiaries, including Venmo, Xoom, and Honey, may also be affected. PayPal joins other tech companies such as Google, Microsoft, and Meta in layoffs during this "cold tech season." Despite this, PayPal's CEO Dan Schulman highlighted the company's progress in "strengthening and reshaping" the company and investing in meeting customer needs. PayPal's stock prices declined by 53% last year, following a trend seen among other tech companies, but noticed a 2.3% increase on the day of the layoff announcement.

PayPal announced a plan to lay off around 7% of its total workforce, amounting to approximately 2,000 employees. The layoffs are a response to what PayPal refers to as the “challenging macroeconomic environment”. The payment giant will phase out the layoffs over time, reducing its workforce by a certain percentage each week.

Some of PayPal’s subsidiary companies, such as Venmo, Xoom, and Honey, may be affected by the layoffs. PayPal is joining the trend of large tech companies, such as Google, Microsoft, and Meta, that have recently laid off employees.

In announcing the layoffs, PayPal President and CEO Dan Schulman stated that the company has made significant progress in restructuring and prioritizing its resources over the past year. However, more work needs to be done to address the challenging macroeconomic environment and meet the needs of its customers.

PayPal shares went down by 53% last year, following the trend of many other tech companies. On the day of the layoff announcement, shares saw a 2.3% increase.

In conclusion, PayPal’s layoff plan is a response to the current economic climate and a move to restructure the company for future success.

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