Group on austerity course
Paypal lays off seven percent of the workforce
01/31/2023 11:57 p.m
The wave of layoffs in the US tech industry is now also affecting PayPal. The payment service provider wants to save and announces the layoff of around 2,000 employees.
The online payment service Paypal wants to get rid of around seven percent of its employees in view of the difficult economic environment – around 2000 employees. This was announced by the San Jose-based company. The step will be taken in the coming weeks, some divisions will be more affected than others. CEO Dan Schulman justified the job cuts as austerity measures. “While we’ve made significant progress in streamlining our cost structure and focusing our resources on our core strategic priorities, we still have work to do,” said Schulman.
A number of companies in the tech industry have decided on major rounds of layoffs in recent weeks and months. Amazon wants to get rid of 18,000 employees, Alphabet has 12,000, and Facebook parent Meta and Twitter also have thousands to go.
Paypal was a big winner early in the pandemic as the company capitalized on rising e-commerce adoption. Since then, however, growth has slowed, and last year PayPal announced a cost-cutting initiative and a renewed focus on its core competencies. In August, the company said it is targeting at least $1.3 billion in cost savings by 2023.