- PayPal will cut around 2,500 jobs in a bid to cut costs and maximize profits
PayPal on Tuesday began company-wide layoffs that will see it cut about 9 percent of its global workforce – or 2,500 jobs.
It comes just months after newly appointed CEO, Alex Chriss, took the company’s helm and noted in an earnings call in November that cost-cutting would be a priority.
PayPal hired aggressively during the pandemic and in 2022 added nearly 30,000 people to its global workforce. Nearly half of those were in the US, it reported at the time.
Last January, it announced it would cut about 7 percent of its workforce – 2,000 people at the time.
The new layoffs will reduce staff across a multiple teams, including engineering and research and development, The Information reported.
This year, a number of tech companies including Amazon, Microsoft, Meta and Google have slashed their workforces.
PayPal on Tuesday began company-wide layoffs that will see it cut about 9 percent of its global workforce – or 2,500 jobs
Newly appointed CEO, Alex Chriss (pictured), said the move was intended to ‘right-size’ the company
In a letter to staff on Tuesday, Chriss said the move was intended to ‘right-size’ the company, allowing it to ‘move with the speed needed to deliver for our customers and drive profitable growth,’ Bloomberg reported.
Staff impacted by the layoffs will ne notified by the end of the week, Chriss noted in the letter.
‘At the same time, we will continue to invest in areas of the business we believe will create and accelerate growth,’ he said.
Shares in PayPal have fallen 20 percent over the past year and a series of earnings results that disappointed investors.
PayPal – which has acquired fintech companies Venmo, Xoom and Honey – was one of the first major players in the online payments industry, but in recent years has faced stiff competition from companies like Apple and Zelle.