The job reductions at PayPal will occur over the coming weeks, the company’s chief said.
U.S.-based payments firm PayPal on Tuesday announced to lay off 7% of its workforce, or 2,000 full-time employees. With this, PayPal joins several other Wall Street giants that have trimmed their workforce amid a grim global economic outlook.
“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,” PayPal’s resident and chief executive officer Dan Schulman said.
The job reductions will occur over the coming weeks and some organizations will be impacted more than others, Schulman added. The company assured to provide “generous” packages and other assistance to the departing employees.
In a nutshell, a setback in consumer spending due to high inflation and the threat of a looming recession this year has pushed corporates to keep a lid on their spending. This has resulted in massive layoffs, the closing of unprofitable or unurgent businesses, and even the shutting down of some corporate offices, among others.
In the past, several multinational tech giants including Microsoft, Meta, and Twitter have also trimmed their workforce as they brace for a global economic slowdown. Earlier this week, Dutch health tech major Philips reportedly announced to scrap another 6,000 jobs across the globe, taking the total number of laid-off employees to 10,000.
Google parent Alphabet has recently laid off approximately 12,000 employees stating that the company was prepared for “a different economic reality.” Alphabet-owned artificial intelligence firm DeepMind Technologies last week said to shut down its office in Canada’s Edmonton amid its parent’s cost-cutting measure.