PayPal has joined the league of companies participating in the layoff spree after Dan Schulman, the president and CEO of the payments giant, announced yesterday that the company has decided to cut down their global workforce by approximately 2,000 full-time employees in the coming weeks.
This is about 7% of its workforce; according to a 2021 Statista report, PayPal had about 30,000 employees. This decision aligns with the company’s aim to confront the “challenging macroeconomic environment.”
He clarified that although the company has made great strides in right-sizing its cost structure, there is still much work to be done and intends to concentrate 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.Dan Schulman, the president, and CEO in the company blog post.
The affected employees will receive severance packages, consultations if needed, and full support in their transitioning journey.
“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.
Read Also: Paypal launches crypto service expansion across 26 country-trading blocs beginning with Luxembourg
PayPal: Down the rabbit hole
At the end of 2022, PayPal’s stock tumbled 62%, making it one of its worst years since its 2015 split from eBay Inc. The company fell short of its 2022 growth goals and suffered a slump like many other tech companies.
PaymentDive also reported that the company might be looking to make changes in its C-suites teams due to this backdrop.
The decision to cut down its workforce is coming just a day after it was reported that Twitter owner Elon Musk, who co-founded PayPal in the early 2000s, is looking to build a payment system for the microblogging site.
The goal is to create an infrastructure to process payments with connected debit cards and bank accounts on Twitter. It is unsure how this will play out for both companies, but it will be a loss for Twitter users who use the app for transactional activities on the microblogging platform.
Layoffs in the tech space
According to Layoffs.FYI, a site tracking all tech layoffs using data compiled from public reports, since the beginning of 2023, over 77917 employees have been laid off from 241 tech companies.
The blog reported yesterday that over 4,600 employees were laid off from 8 companies, and the list is expected to grow in the coming weeks.
Big tech giants like Amazon, TikTok, Microsoft, IBM, Luno, Spotify, Google, and many others have also been affected by the economic downturn, causing them to cut down a big chunk of their workforce.
Read Also: Growth in AI adoption coincides with the biggest layoff season but here are 4 reasons it won’t replace humans completely
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