In a bid to navigate the challenging macro-economic environment, American payment platform Paypal has revealed plans to trim 7% of its global workforce, approximately 2,000 of its full-time employees.
The company’s recent layoff plan was shared with employees by its president and CEO Dan Schulman, via a memo, stating that the layoff plan was necessitated for Paypal to effectively address the challenging macroeconomic environment, while continuing to invest to meet customers’ needs.
The memo reads in part,
“Over the past year, we made significant progress in strengthening and reshaping our company to address the challenging macroeconomic environment while continuing to invest to meet our customers’ needs.
“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. We must continue to change as our world, our customers, and our competitive landscape evolve.
“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”.
The CEO further disclosed that laid-off employees will be provided with generous packages, also they will be provided with consultations where required to support their transition.
In the company’s third quarter (Q3) report, Paypal reported net revenue of $6.18 billion, adding 13.3 million net new active accounts, to bring its total active accounts to 416 billion.
It also reported a net income of $1.47 billion, Non-GAAP earnings were $1.11 per share, falling short of Wall Street’s estimated earnings of $1.08 per share on revenue of $6.24 billion.
Paypal’s recent layoff announcement marks the latest round of job cuts in the tech industry as tech most firms in recent times, have laid off a significant amount of their workforce in response to the global economic downturn.
Companies such as Microsoft, Spotify, Salesforce, Amazon, Meta, Google, etc, have all laid off a significant percentage of their workforce.
Investors King understands that more than 58,000 workers in U.S.-based tech companies have been laid off in mass job cuts so far in 2023.