On Tuesday, PayPal declared its intention to reduce its workforce by 7%, equivalent to around 2,000 full-time employees, due to the present challenging economic environment. The reductions will occur gradually over several weeks, with some departments being affected more severely than others. No further information was disclosed. PayPal is the parent company of several brands including Venmo, Xoom, and Honey, among others.
PayPal, based in San Jose, California, has added its name to the growing list of tech companies that are reducing their workforce. In just January, Google, Microsoft, and Salesforce have all announced plans for significant job cuts.
During the summer of 2022, activist investor Elliott Management acquired a stake in PayPal worth approximately $2 billion. PayPal announced that it had agreed with Elliott to share information and work together toward realizing various opportunities for creating value
Earlier this week, PayPal President and CEO Dan Schulman issued the following statement:
Over the past year, we have made significant progress in enhancing and restructuring our company to tackle the difficult macro-economic climate while also continuing to invest in meeting our customers’ needs. Despite substantial progress in optimizing our cost structure and focusing our resources on core strategic objectives, there is still more work to be done.
PayPal Holdings Inc. will announce its Q4 results on February 9th. Despite a 2.3% rise to $81.49 at the close of trading on Tuesday, the company’s shares have declined by 53% over the past year.
