PayPal to lay off around 2500 employees to 'right-size' the company

The layoff cycle continues as several tech giants like Google, Microsoft, and eBay continue to give pink slips to their employees. Now payment industry giant PayPal has joined the trend by announcing a reduction in its global workforce by 9 per cent (2500 employees).

PayPal CEO Alex Chriss shared an internal memo to its employees mentioning that the company wants to “right-size its business, driving more focus and efficiency.” This layoff will affect the existing staff of the company and the new positions the company planned to fill.

PayPal CEO also mentioned in its internal memo that the affected staff will be notified by the end of the week.

The development comes soon after PayPal announced that it doubled down on Artificial intelligence by enabling faster checkout, AI-powered merchant recommendations and more.

CEO Alex Chriss called it the ‘next chapter’ in the journey of PayPal.

Last year, the company underwent the same situation and announced to lay off 2000 people, consisting of 7 per cent of its staff due to a challenging macro-economic environment. After announcing to reduce 2500 more employees now, the total layoffs surge to 4500.

As per reports, PayPal’s decision to lay off its employees is followed by declining revenue and share performance. The earnings of the payment giant have fallen, dropping its share by 20 per cent in the past year.

Chriss joined PayPal as CEO last year from software company Intuit, replacing Dan Schulman.

The layoff trend is spread across the world, and the tech industry has witnessed the most number of jobs cut. As per layoffs.fyi, over 100 tech companies laid off employees in the first month of 2024.

Tech giants like Meta, Microsoft, Google, Salesforce and TikTok have laid off around 25000 employees as cost-cutting and restructuring strategies.

Google started this recent trend, by cutting over a thousand jobs followed by Amazon, which laid off 500 employees at Twitch and a hundred more at Amazon Prime.

Microsoft is also not behind the race, and the tech giant has sent home some 1,900 workers from Activision Blizzard and Xbox. Apart from these, many other companies, such as Flipkart and Swiggy, announced layoffs.

First Published: Jan 31 2024 | 2:45 PM IST

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