2000 jobs at PayPal were lost in the most recent tech layoffs.
As it struggles with a macroeconomic slowdown that has negatively impacted its revenue in recent quarters, PayPal Holdings Inc. announced it would lay off 2,000 employees.
PayPal Holdings Inc. announced it would lay off 2,000 employees as it suffers from a macroeconomic slowdown that has adversely affected its income in recent quarters.
“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,” Schulman stated.
The slowing in platform-wide volume growth once the pandemic started to abate has hurt PayPal’s stock. In response, the business has committed to cutting costs by eliminating jobs and closing locations around the nation.
According to Schulman, those actions should have enabled the corporation to save $900 million last year and at least another $1.3 billion in 2023. Instead, the 65-year-old CEO has been outspoken about his aspirations to increase his company’s operating leverage, or capacity to increase sales more quickly than costs.
At 3:55 PM in New York, PayPal shares increased 1.9% to $81.14. The stock has increased 14% this year, beating the S&P 500 Information Technology Index’s 9% growth.
PayPal, like many other ‘pandemic darlings,’ saw its headcount rise as more people started shopping online due to the virus forcing lockdown orders from governments worldwide. Consumers have flocked back to in-store shopping in droves due to those orders being lifted, but supply networks are still under strain.
According to analyst estimates compiled by Bloomberg, PayPal is expected to report that payments volume on its many platforms climbed to $1.4 trillion last year. While that’s a 9.6% increase from a year earlier, that would still mark the lowest level of growth in the firm’s history as a public company.
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“Over the past year, we made significant progress in strengthening and reshaping our company to address the challenging macroeconomic environment while continuing to invest to meet our customer’s needs,” said Schulman. “We must continue to change as our world, customers, and competitive landscape evolve.”