PayPal Will Lay Off 2,000 Employees to Cut Costs Amid Ongoing Economic Slowdown

PayPal has announced that full-time employees will be laid off over several weeks, with some of its organisations being affected more than others.

By Reuters | Updated: 1 February 2023 15:44 IST

PayPal Will Lay Off 2,000 Employees to Cut Costs Amid Ongoing Economic Slowdown

PayPal joins Google, Microsoft and Salesforce who also announced tens of thousands of layoffs

Highlights

PayPal blamed challenging macro-economic environment for layoffs
Job cuts will take place over several weeks
PayPal is scheduled to report quarterly results on February 9

PayPal Holdings said on Tuesday it is planning to cut 7 percent of its workforce, or about 2,000 employees, the latest in a list of fintech firms to be hit by the economic slowdown.

The payments firm also joins Big Tech firms and Wall Street titans, which are executing layoffs across corporate America as companies look to rein in costs to ride out the downturn.

PayPal's move to keep a tight lid on costs comes against the backdrop of decades-high inflation hitting the purchasing power of consumers who also have to contend with the threat of a looming recession.

Samsung Wins Patent for a Tri-Fold Smartphone With Specialised Barrier Layer for Improved Durability

"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," said PayPal's Chief Executive Dan Schulman in a statement.

Shares of the payments firm, which lost about 60 percent of their value last year, were up about 2 percent in afternoon trading.

"Similar to other tech companies, PayPal is seeking to position itself financially and strategically, bracing for an economic slowdown," said Moshe Katri, analyst at Wedbush.

PayPal Begins Crypto Offerings In EU Starting with Luxembourg: Details

Thomas Hayes, chairman and managing member at investment firm Great Hill Capital told Reuters that "tech over-hired during the pandemic and rationalizing staff during a soft period will help them to retain margins as conditions recover."

In November, PayPal had cut its annual revenue growth forecast in anticipation of a broader economic downturn and said it did not expect much growth in its US e-commerce business in the holiday quarter.

Executives at the company said at the time that a challenging macro environment, and slowing e-commerce trends were pushing it to be prudent with its forecast.

PayPal Shares Dropped Nearly 6 Percent Amid Warning About Bleak Quarter

What are the best smartphones you can buy in India in 2022? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.