Payments giant PayPal has joined the list of tech companies that are laying off workers.
This became imminent after Dan Schulman, the payments giant’s president, and CEO, stated yesterday that the company plans to reduce its global staff by around 2,000 full-time employees in the coming weeks.
This is approximately 7% of its employment; according to a 2021 Statista study, PayPal employed over 30,000 employees. This move is in line with the company’s goal of dealing with the “challenging macroeconomic environment.”
He stressed that, while the company has made significant progress in right-sizing its cost structure, there is still much work to be done and that it aims to focus more of its resources on core priorities.
“Addressing these changes requires us to make hard decisions that will impact some of our colleagues. Today, I’m writing to share the difficult news that we will be reducing our global workforce by approximately 2,000 full-time employees, which is about 7% of our total workforce. These reductions will occur over the coming weeks, with some organizations impacted more than others,” the company’s president, and CEO, Dan Schulman, said in the company blog post.
“Over the next days and weeks, your leaders will share the specific impacts within your business units and teams. Our leadership team will communicate regularly and openly. This will be a challenging period for our community, but I am confident we will come through it together with compassion for each other, our values at the fore, and a shared commitment to the future of PayPal,” he added.
The affected employees will also receive severance packages and other support in their transitioning journey.
PayPal’s stock dropped 62% by the end of 2022, making it one of the worst years for the company since its 2015 split from eBay Inc. The corporation fell short of its 2022 growth targets and experienced a collapse, as did many other technology companies.
Also, PaymentDive reported that, as a result of this backdrop, the firm may be considering making changes in its C-suite staff.
The company’s move to reduce its employment comes just a day after it was revealed that Twitter owner Elon Musk, who co-founded PayPal in the early 2000s, is looking to develop a payment system for the microblogging site, Twitter.