7% of Workforce: Payment firm PayPal to lay off 2,000 employees

In another shocking announcement concerning tech layoffs, fintech firm PayPal Holdings Inc revealed Tuesday it’s planning to fire about 2,000 employees – equivalent to 7% of its workforce – amid the ongoing economic slowdown.

Just like other tech giants, PayPal also went on a hiring spree during the Covid-19 lockdowns when people started shopping online and preferred cashless payments. But as markets reopened and people started venturing out again, the company started witnessing a sharp reduction in online payments and pressure on the supply chain.

Furthermore, the ongoing inflation and the cost of living crisis it has brought along are affecting the purchasing power of consumers, and the looming global recession is restricting people to go with more purchases.

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In order to survive through these tough circumstances, PayPal has decided to reduce its expenses by shutting down a number of offices and cutting down jobs.

The decision resembles those of Big Tech companies and Wall Street giants, which are controlling costs by executing layoffs across corporate America.

The payment firm will be firing employees across departments, with some sections affected more than others. The layoffs will take place in the coming weeks and “your leaders will share the specific impacts within your business units and teams,” Chief Executive Dan Schulman wrote in a memo to employees.

Last November, PayPal lowered its annual revenue forecast, warning of a bleak holiday quarter. At the time, executives at the company mentioned that slowing e-commerce trends and a challenging macro environment were causing it to be prudent with the forecast.

The start of 2023 proved that even Google, Microsoft, and Amazon are not immune to the effects of economic slowdown. While Amazon recently announced plans to cut over 18,000 jobs, Google’s parent company Alphabet, and Microsoft have also revealed major layoffs, equivalent to 12,000 and 10,000, respectively.