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.
