PayPal Will Lay Off 2,000 Employees to Cut Costs Amid Ongoing Economic Slowdown

Europe

PayPal Holdings said on Tuesday it is planning to cut 7 percent of its workforce, or about 2,000 employees, the latest in a list of fintech firms to be hit by the economic slowdown.

The payments firm also joins Big Tech firms and Wall Street titans, which are executing layoffs across corporate America as companies look to rein in costs to ride out the downturn.

PayPal‘s move to keep a tight lid on costs comes against the backdrop of decades-high inflation hitting the purchasing power of consumers who also have to contend with the threat of a looming recession.

“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.

Shares of the payments firm, which lost about 60 percent of their value last year, were up about 2 percent in afternoon trading.

“Similar to other tech companies, PayPal is seeking to position itself financially and strategically, bracing for an economic slowdown,” said Moshe Katri, analyst at Wedbush.

Thomas Hayes, chairman and managing member at investment firm Great Hill Capital told Reuters that “tech over-hired during the pandemic and rationalizing staff during a soft period will help them to retain margins as conditions recover.”

In November, PayPal had cut its annual revenue growth forecast in anticipation of a broader economic downturn and said it did not expect much growth in its US e-commerce business in the holiday quarter.

Executives at the company said at the time that a challenging macro environment, and slowing e-commerce trends were pushing it to be prudent with its forecast.

© Thomson Reuters 2023


Affiliate links may be automatically generated – see our ethics statement for details.

Products You May Like

Articles You May Like

WhatsApp Spotted Working on AI-Powered Image Editor, Ask Meta AI Feature
Nokia 3210 4G, HMD Pulse+, HMD Legend, HMD T21 Tablet, More Tipped to Launch Soon; Colourways Tipped
iQoo Tipped to Be Working on Smartphone With Snapdragon 8 Gen 3 Chip, Could Debut as iQoo Neo 10 Pro
WhatsApp Reportedly Testing International Payments via UPI for Indian Users
Samsung Galaxy Tab Active 5 Enterprise Edition to Get Eight Years of Android OS Updates, Security Patches

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.