PayPal will cut about 9% of its global workforce – roughly 2,500 jobs – after Covid-era hiring spree bloated costs
- PayPal will cut about 2,500 jobs in an effort to cut costs and maximize profits
- New CEO Alex Chriss said in November that cost-cutting would be a priority
PayPal began company-wide layoffs Tuesday that will see it cut about 9 percent of its global workforce — or 2,500 jobs.
It comes just months after new CEO Alex Chriss took over the company’s helm, indicated in an earnings call in November that cost-cutting would be a priority.
PayPal hired aggressively during the pandemic and in 2022 added nearly 30,000 people to its global workforce, nearly half of which were in the US.
But this time last year, it announced it would cut about 7 percent of jobs.
This latest round will cut staff across multiple teams, including engineering and research and development, The information reported.
PayPal on Tuesday began company-wide layoffs that will see it cut about 9 percent of its global workforce — or 2,500 jobs
Newly appointed chief executive Alex Chriss (pictured) said the move was intended to ‘right-size’ the company
In a letter to staff on Tuesday, Chriss said the move was intended to “right-size” the company so it could “move with the speed needed to deliver for our customers and drive profitable growth.” Bloomberg reports.
“At the same time, we will continue to invest in areas of the business that we believe will create and accelerate growth,” he said.
Staff affected by the layoffs will be notified by the end of the week, according to the letter.
Shares in PayPal have fallen 20 percent over the past year, during which consecutive earnings results have disappointed investors.
PayPal – which acquired fintech companies Venmo, Xoom and Honey – was one of the first major players in the online payments industry, but has faced stiff competition in recent years from companies such as Apple and Zelle.
This year, a number of tech companies, including Amazon, Microsoft, Meta and Google, have cut their workforces.