2,000 staff are being let go by PayPal

2,000 staff are being let go by PayPal

PayPal is about to become the next technology corporation to lay off a significant portion of its workers. The payments company revealed plans to lay off 2,000 people on Tuesday, accounting for nearly 7% of its workforce. The layoffs will take place over the next several weeks, according to PayPal president and CEO Dan Schulman, with certain sectors of the firm being impacted more than others.

“We will treat our departing colleagues with the utmost respect and empathy, provide them with generous packages, engage in consultation where required and support them with their transitions,” Schulman stated. “I want to express my personal appreciation for the meaningful contributions they have made to PayPal.”

In recent months, the business has joined many IT companies that have announced layoffs. Google announced intentions to let off 12,000 people, or around 6% of its worldwide workforce, earlier this month. Microsoft has already said that it will lay off 10,000 employees. Like his predecessors at Microsoft, Google and other major businesses, Schulman blamed PayPal’s layoffs on the “difficult macro-economic climate” the company finds itself in lately. “We have made significant progress in right-sizing our cost structure and focusing our resources on our key strategic goals,” he added.

It is worth remembering that the US economy has not yet entered a recession. The national unemployment rate is at a 50-year low of 3.5 per cent, and the GDP has increased in recent quarters. PayPal, in particular, exceeded Wall Street estimates on its most recent results call, with sales and profits growing by 11% and 7% year on year, respectively.

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