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PayPal Slashes 2,500 Jobs Amidst Intensifying Competition

PayPal is cutting 2,500 jobs, representing 9% of its global workforce. CEO Alex Chriss aims to "right-size" the company through direct reductions and the elimination of open roles. Rising competition from Apple, Zelle, and Block is driving PayPal's downsizing efforts.

In a move to stay competitive, PayPal has announced plans to cut 2,500 jobs, which accounts for 9% of its global workforce. This decision comes just a year after a similar downsizing effort. CEO Alex Chriss explained that the aim is to "right-size" the company by reducing both direct positions and open roles. Affected employees will be notified by the end of the week, according to the digital payments giant.


PayPal is facing mounting competition from rivals like Apple, Zelle, and Block. To address these challenges, Chriss, who was brought in from software company Intuit last year, has been tasked with turning the company around. Investors are hopeful that he can reverse the downward trend in PayPal's share price, which has dropped by over 20% in the past year.


In November, PayPal reported its first earnings under Chriss' leadership, surpassing analysts' expectations. This positive outcome provided some optimism that the company's turnaround was gaining momentum. Last week, PayPal launched new AI-driven products and introduced a one-click checkout feature to enhance its offerings.


The recent job cuts in the technology sector are not unique to PayPal. Other industry giants have also implemented significant layoffs in recent months. According to the Layoffs.fyi website, which tracks job cuts in the technology industry, over 260,000 jobs were lost in the sector last year. In the past month alone, nearly 100 tech firms, including Meta, Amazon, Microsoft, Google, TikTok, and Salesforce, have collectively announced 25,000 job cuts.


Block, led by Twitter co-founder Jack Dorsey, has also begun reducing its workforce as part of its plan to trim 1,000 jobs by the end of the year. Executives attribute these job losses to the aftermath of the pandemic hiring spree and high inflation, which have resulted in weakened consumer demand.


However, not all technology industry workers are accepting these job cuts without resistance. Earlier this month, a union representing Google workers criticised the tech giant for cutting hundreds of jobs despite its multi-billion-dollar annual revenue, deeming it unnecessary.

 
  • PayPal is cutting 2,500 jobs, representing 9% of its global workforce.

  • CEO Alex Chriss aims to "right-size" the company through direct reductions and the elimination of open roles.

  • Rising competition from Apple, Zelle, and Block is driving PayPal's downsizing efforts.


Source: BBC

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