The start of 2023 witnessed thousands of employees losing their jobs. The mass layoffs across tech companies proved that even big giants like Google, Microsoft and Amazon are not immune to the challenges posed by the economic slowdown. Companies are taking stricter measures to rescue costs and control expenditure amid stagnant or falling revenue profits. And after all the chaos of layoffs in January, another tech company has announced it will reduce its workforce, continuing the strike of layoffs in February. FinTech company PayPal is planning to fire 2,000 employees.
The fintech firm PayPal Holdings announced on Tuesday that it will be laying off employees due to the ongoing economic challenges and will cut 7 per cent of its workforce. The decision goes parallel with the ongoing layoffs in Big Tech companies and Wall Street giants, who are controlling costs by reducing the workforce.
“While we have made substantial progress in right-sizing our cost structure, and focused our resources on our core strategic priorities, we have more work to do,” said PayPal’s Chief Executive Dan Schulman in a statement.
The layoffs will take place in the coming weeks and impacted employees will be informed about the decision by their team leaders. PayPal will be firing employees across departments, with some organizations impacted more than others.
“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,” Schulman further wrote in a memo to employees.
Notably, many executives at the company say that the challenging times and ongoing macro environment, and slowing e-commerce trends have pushed the company to take such measures. The company has been struggling with falling stock after the pandemic. The impact came after PayPal witnessed slower growth in payments volume on its platform. Additionally, just like other tech giants, PayPal also went on a hiring spree during the pandemic when people started to shop online and went towards cashless payments.
But after the pandemic when everything started coming back to normal and hence the company again witnessed a decline in online payments and pressure on the supply chain. Additionally, the ongoing high-inflation is high inflation impacting the purchasing power of consumers. Also, the looming recession is restricting them to go with more purchases.
This has led to pressure on the supply chain of PayPal and the company is struggling to keep up with the revenue profits. In order to thrive through the ongoing adverse situation, the company has decided to reduce its expenses by cutting down jobs and even shutting down many offices.