PayPal to lay off 2,000 employees
The online payments company becomes the latest tech employer to announce mass layoffs.
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PayPal has become the latest technology company to announce wide-spread layoffs, with the company set to cut 2,000 jobs, about 7% of its workforce.
In a message shared with PayPal employees and since posted on the company’s online newsroom, President and CEO Dan Schulman said while PayPal had made “significant progress…to address the challenging macro-economic environment” over the past year, “we have more work to do.”
The job cuts will occur over the coming weeks, with some parts of the business impacted more than others, Schulman added without sharing the specifics.
“We will treat our departing colleagues with the utmost respect and empathy, provide them with generous packages, engage in consultation where required, and support them with their transitions,” he said.
Although the company beat expectations in November when it reported its third quarter financial results, PayPal did downgrade its forecast for the fourth quarter of 2022, citing a challenging macro environment, slowing ecommerce trends, and an unpredictable holiday shopping season. PayPal is set to report its 2022 fourth quarter financial results on February 9.
The news comes at the end of another challenging month for technology workers, with Google, Microsoft, Salesforce and Amazon all announcing in January that they would be laying off a combined total 48,000 workers across the globe.
2023-02-02 19:00:04 PayPal to lay off 2,000 employees
Article from www.computerworld.com The financial services giant PayPal announced it would be laying off 2,000 employees, or 7% of its entire workforce, amid the economic impact of the novel coronavirus.
In a statement released on Wednesday, PayPal said the layoffs would affect most divisions of the company, including operations and consumer product.
“We are making difficult yet necessary changes to ensure PayPal is well-positioned with the right resources and capacities to meet evolving market demands and the needs of our customers,” said Dan Schulman, PayPal’s President and CEO in the statement.
The company also revealed that it planned to cut executive pay by up to 25% as part of its cost-cutting measures. The resulting estimated savings from the layoffs and pay cuts are estimated at $250 million dollars.
The layoffs come as the wider economy continues to be impacted by the coronavirus pandemic and its related shutdowns. A number of other major companies, including the oil giant BP and the hospitality company Marriott, have also announced layoffs in recent weeks in response to the economic situation.
According to the company, employees who are laid off will be given six weeks of pay, benefits, and outplacement services to help them transition to new jobs.
PayPal said it will use the savings created by the personnel cutbacks to invest in growth opportunities and to fund “new and innovative experiences.”
The company hopes these investments will help carry it through the economic disruptions caused by the virus.