PayPal announced on Tuesday that it plans to reduce its workforce by 7%, approximately 2,000 full-time employees, due to the current challenging economic conditions.
The cuts will be made over a period of weeks, with some departments being impacted more than others. No additional details were provided. PayPal is the parent company of Venmo, Xoom, Honey, and other brands.
PayPal, located in San Jose, California, has joined the list of tech companies reducing their workforce. In January alone, Google, Microsoft, and Salesforce revealed plans for significant layoffs.
In the summer of 2022, activist investor Elliott Management acquired a stake worth approximately $2 billion in PayPal, with the company stating that it entered into an “information-sharing agreement” with Elliott to “continue collaboration across a range of value-creation opportunities.”\
PayPal President and CEO Dan Schulman said in a statement earlier this week:
Over the past year, we made significant progress in strengthening and reshaping our company to address the challenging macro-economic environment while continuing to invest to meet our customers’ needs. While we have made substantial progress in right-sizing our cost structure, and focused our resources on our core strategic priorities, we have more work to do.
PayPal Holdings Inc. will announce its Q4 results on Feb 9. Despite a 2.3% increase to $81.49 at close on Tuesday, the company’s shares have dropped 53% in the past year.