PayPal has announced its plans to reduce its workforce by nine percent as part of its effort to restructure its business. The job cuts will affect approximately 2,500 employees across the company’s global offices. This move follows a challenging period for PayPal, marked by declining revenue, share performance, and a more than 20 percent drop in shares over the past year. As a result, the company has adjusted its full-year forecast for adjusted operating margin and has emphasized its desire to focus on improving its efficiency.
The job reduction will be implemented throughout the year, impacting both existing roles and planned hires. All affected employees will receive notifications of their job termination by the end of the week. This is not the first time PayPal has cut jobs, as it had already undertaken a similar workforce reduction in January of the previous year, eliminating 2,000 positions globally.
PayPal acknowledged the need for continual transformation in response to the evolving world, changing customer dynamics, and the shifting competitive landscape. The tech industry is currently witnessing a pervasive trend of layoffs, with many tech companies like Meta, Amazon, Microsoft, Google, TikTok, and Salesforce collectively laying off around 25,000 workers in the first month of 2024.
