PayPal to lay off 7% of its workforce

PayPal announced on Tuesday to shed around 2,000 jobs or 7% of its workers. Online payments company says it was forced to make the decision as it faces “the challenging macro-economic environment.”

PayPal said it will make the cuts over several weeks, with some of its organizations affected more than others. The company did not further specify. PayPal is the parent of Venmo, Xoom, and Honey, among other brands.

PayPal Chief Executive’s statements

The cuts, which will affect about 7% of employees, will take place in the coming weeks, Chief Executive Officer Dan Schulman told employees in a memo.

“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,” Schulman said.

Those moves should have helped the company notch $900 million in savings last year and at least an additional $1.3 billion in 2023, Schulman has said. The 65-year-old CEO has been vocal about his plans to improve his firm’s operating leverage or the ability to grow revenue faster than expenses.

“Over the past year, we made significant progress in strengthening and reshaping our company to address the challenging macro-economic environment while continuing to invest to meet our customer’s needs,” Schulman said. “We must continue to change as our world, our customers, and our competitive landscape evolves.”

The company based in San Jose, California, is the latest in the technology sector to trim its headcount. During the month of January alone, Google, Microsoft, and Salesforce announced tens of thousands of layoffs.

Also read: Intel slashes employees’ salaries, cut top officials’ pay by 25%