On Tuesday, payment platform PayPal announced plans to lay off 2,000 employees, about 7% of its workforce. The CEO, Dan Schulman, stated that the cuts are due to the “challenging macroeconomic environment” and that the company is focusing its resources on core priorities and reducing costs.
He explained, “Change can be difficult – particularly when it includes valued colleagues and friends departing. We will face this head-on together, drawing on the unparalleled scale of our global platform, the strategic investments we have made to strengthen our core capabilities, and the trust and loyalty of our customers.”
According to CNBC, the announcement was released on the company’s website. Despite the job cuts, PayPal’s stock closed up 2% on Tuesday. The announcement is part of a broader trend of job cuts in the tech industry, with other companies such as Google, Microsoft, Salesforce, and Workday also making similar announcements recently.
PayPal reported better-than-expected earnings and revenue in its third quarter, but its shares declined after the fourth-quarter revenue estimate fell below analyst expectations. PayPal raised its full-year earnings per share guidance and cited its “ongoing productivity initiatives” as the primary reason for the layoffs. The company’s fourth-quarter earnings will be reported on February 9.
