The latest software business to lay off a sizable portion of its workers is about to be PayPal. On Tuesday, the payments company revealed intentions to lay off nearly 2,000 workers, or about seven percent of its whole workforce. The layoffs will take place over the coming weeks, according to PayPal President and CEO Dan Schulman, with some divisions of the business being more negatively impacted than others.
“We will treat our departing colleagues with the highest respect and sensitivity, offer them significant packages, participate in consultations as needed, and support them with their transitions,” Schulman added. “I want to personally thank them for the significant contributions they have made to PayPal,” you say.
The business adds its name to a growing number of tech firms that have recently announced layoffs. Google announced plans to fire 12,000 workers earlier this month, or around 6% of its global workforce. Microsoft had before announced it will eliminate 10,000 employees.
Global payments company PayPal is laying off 2,000 employees, about 7 per cent of its workforce pic.twitter.com/vhF2tDDASq
— Insider News (@InsiderNewsKe) February 1, 2023
Like his colleagues at Microsoft, Google, and other digital companies, Schulman attributed PayPal’s recent layoffs to the “difficult macro-economic climate” the company is currently experiencing.
“We still have more work to do, even though we have made significant progress in right-sizing our cost structure and concentrating our resources on our core strategic priorities,” he said.
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It’s important to note that the US economy is not currently in a recession. The country’s unemployment rate is at a 50-year low of 3.5 percent, and the gross domestic product increased during the past three quarters. Regarding PayPal particularly, the business outperformed Wall Street forecasts on its most recent results call, with revenue and income rising by 11% and 7% annually, respectively.
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