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'Strengthening and reshaping our company': PayPal to cut 2,000 employees

Photo by Jakub Porzycki/NurPhoto via Getty Images

Money transferring service PayPal is the latest tech company to announce mass layoffs in a move that will release 7% of its workforce, according to a corporate memo by the CEO.

"We made significant progress in strengthening and reshaping our company to address the challenging macro-economic environment while continuing to invest to meet our customers’ needs," President and CEO Dan Schulman told employees.

Schulman also remarked on "substantial progress" and focusing on strategic priorities before telling his team that they must "continue to change as our world, our customers, and our competitive landscape evolve."

The 2,000 cuts will come over several weeks, with the company claiming it will provide "generous" severance packages, engage in consultation "where required," and support the former employees in their transitions out of the company.

"We will be reducing our global workforce by approximately 2,000 full time employees, which is about 7% of our total workforce," Schulman wrote.

PayPal stock bounced back by more than 10% in January 2023 after a horrific year for the company in 2022. PayPal Holdings Inc. dropped over 50% in value in the previous year, sinking from over $180 per share down to less than $90.

"Change can be difficult – particularly when it includes valued colleagues and friends departing. We will face this head-on together, drawing on the unparalleled scale of our global platform, the strategic investments we have made to strengthen our core capabilities, and the trust and loyalty of our customers," the CEO added.

PayPal joins the array of tech companies trimming their workforces en masse, including the most recent Spotify layoff of 6,000 employees.

Microsoft said it couldn't "defy gravity" when it released 10,000 workers in mid-January 2023, approximately 5% of their staff. Despite this, Microsoft announced soon thereafter that it was dumping billions into an artificial intelligence company and the advancement of AI technologies.

Amazon opened 2023 with an announcement of 8,000 job cuts, saying the company is unable keep up with increasing inflation and poor economic numbers.

In late 2022, Meta announced 11,000 employees would be let go, beginning the firestorm that is Silicon Valley and tech industry layoffs to start the new year.

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