The wave of layoffs in the United States continues to spread! PayPal will lay off 2,000 people!

According to foreign media reports, on January 31, local time in the United States, online payment giant PayPal announced plans to lay off 2,000 employees, accounting for about 7% of its total employees. The layoffs will be carried out in the next few weeks.

PayPal CEO Dan Schulman announced the layoffs in an email to employees. He said the company is "working hard to navigate a challenging macroeconomic environment. While the company has made substantial progress in reducing its cost structure and focusing resources on its core strategic priorities, there is still more work to do."

“Change can be difficult — especially when valued colleagues and friends leave,” Dan Schulman wrote of the layoffs. “We will face this challenge together, leveraging our unparalleled platform scale and the trust and loyalty of our customers to make strategic investments to strengthen core capabilities.”

The company's layoffs mark the latest in a wave of job cuts in the tech industry, with Workday also announcing plans to cut 525 jobs on Tuesday. Earlier this month, Google announced plans to cut more than 12,000 employees, Microsoft announced plans to cut 10,000 employees, and Salesforce announced plans to cut 7,000 employees.

PayPal's stock price was hit by slowing payment volume growth after the pandemic began to subside. In response, the company said it would reduce expenses - including by laying off employees and closing offices across the country.

Dan Schulman said the measures will help the company save $900 million in expenses in 2022 and reduce expenses by another $1.3 billion in 2023.

It is reported that as of 3:55 pm on January 31, PayPal's stock price jumped 1.9% to $81.14. This year, the company's stock price has climbed 14%, outperforming the 9% increase in the S&P 500 Information Technology Index.

Payment volume on PayPal’s platform climbed to $1.4 trillion last year, up 9.6% from the previous year, but that would still be the company’s slowest growth since it went public, according to analyst estimates compiled by Bloomberg.

Dan Schulman said that over the past year, PayPal has made significant progress in continuing to invest to meet customer needs, strengthen and reshape the company to respond to a challenging macroeconomic environment. PayPal must continue to change as the world, customers and the competitive landscape evolve.

Editor ✎ Nicole/

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