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  • Kyle Chua

PayPal Lays Off 2,000 Employees To Address “Challenging Macro-Economic Environment”

PayPal is the latest tech company that has commenced cost-cutting measures amid economic uncertainty and reduced consumer spending.

Credit: Reuters via Engadget

President and CEO Dan Schulman on Tuesday, 31 January announced in a corporate message that the digital payments giant is laying off about 2,000 full-time employees in the coming weeks, equating to about 7% of its global workforce. While Schulman did not share specifics, he did say that the company shall be providing those affected with generous packages and support during the transition.


He explained that previous efforts to reshape the company – adjusting cost-structure and focusing resources on core strategic priorities – weren't enough to address the “challenging macro-economic environment". As such, he was forced to make the hard decision to lay off employees.


"Change can be difficult – particularly when it includes valued colleagues and friends departing," wrote Schulman. "We will face this head-on together, drawing on the unparalleled scale of our global platform, the strategic investments we have made to strengthen our core capabilities, and the trust and loyalty of our customers."

PayPal President and CEO Dan Schulman. Credit: Reuters

“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 announcement comes amid a surge in layoffs among tech companies as the once-high-flying industry is now facing a reckoning brought about by disappointing financial results, global conflicts, inflation and rising interest rates.


Microsoft, for example, earlier in January announced it was sacking 10,000 employees over the next eight months, which is less than 5% of the company's workforce. Salesforce in the same month reduced its workforce by about 10%, which affected more than 7,350 employees. In January alone, tech companies have reportedly cut 60,000 jobs, a stark contrast to the hiring sprees during the pandemic, with many people moving their lives online.

 
  • PayPal announced it's laying off about 2,000 full-time employees in the coming weeks, equating to about 7% of its global workforce.

  • President and CEO Dan Schulman explained that the hard decision was made to address the “challenging macro-economic environment".

  • The announcement comes amid a surge in layoffs among tech companies as the once-high-flying industry is now facing a reckoning brought about by disappointing financial results, global conflicts, inflation and rising interest rates.

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