Due to the difficult economic circumstances, PayPal declared on Tuesday that it will be reducing its workforce by 7%, or roughly 2,000 full-time employees.
Some departments may be more negatively impacted than others as a result of the cuts, which will be imposed over a few weeks. No other information was given. The parent firm of the brands Venmo, Xoom, Honey, and others is PayPal.San Jose, California-based PayPal has joined the list of tech corporations that are laying off employees. Google, Microsoft, and Salesforce alone announced plans for sizable layoffs in January.
PayPal announced that it and activist investor Elliott Management had signed a “information-sharing agreement” to “maintain collaboration across a range of value-creation opportunities” after Elliott acquired a stake in PayPal in the summer of 2022 for about $2 billion. Earlier this week, PayPal
President and CEO Dan Schulman issued the following statement:
In order to confront the adverse macroeconomic environment and continue to invest in meeting the demands of our customers, we made tremendous progress over the past year in strengthening and restructuring our business. We still have work to do, even though we have made significant progress in right-sizing our cost structure and concentrating our resources on our key strategic priorities.
On February 9, PayPal Holdings Inc. will release its Q4 results. The company’s shares have decreased 53% over the past year, despite Tuesday’s close seeing a 2.3% uptick to $81.49 per share.