PayPal to lay off 2,000 employees in coming weeks, about 7% of workforce

PayPal on Tuesday introduced plans to lay off 2,000 employees, or round 7% of its workforce, in accordance to a release posted to the company’s website.

President and CEO Dan Schulman wrote in the discharge that PayPal is working to deal with the “difficult macroeconomic atmosphere.” He mentioned the corporate has made progress focusing assets on core priorities and rightsizing its price construction, however that there’s extra work to be carried out.

“Change might be troublesome – significantly when it consists of valued colleagues and associates departing,” Schulman wrote about the layoffs. “We will face this head-on collectively, drawing on the unparalleled scale of our world platform, the strategic investments we now have made to strengthen our core capabilities, and the belief and loyalty of our clients.”

PayPal inventory notched up on the information and is now up greater than 2% for the day.

The firm’s layoffs announcement marks the most recent spherical of job cuts in the tech trade, as Workday additionally introduced plans to minimize 525 jobs Tuesday. Earlier this month, Google introduced plans to lay off greater than 12,000 workers, Microsoft introduced plans to minimize 10,000 employees and Salesforce introduced plans to lay off 7,000 workers.

In its third-quarter earnings report, PayPal beat on earnings and income expectations, however shares slid after the corporate’s This autumn income estimate got here in behind analysts’ expectations. But PayPal raised EPS steering for the total fiscal yr, saying it is benefited from “ongoing productiveness initiatives.”

During a name with analysts after the corporate’s Q3 earnings report, appearing CFO Gabrielle Rabinovich talked about the corporate’s projections for 2023.

“We’re working in an atmosphere the place we expect we’re going to proceed to have inflationary pressures, the place actual wage progress goes to proceed to be adverse for a interval of time, the place discretionary spend can be below strain,” Rabinovich mentioned. “We’re navigating that atmosphere as greatest we are able to, and we have considered that vary of outcomes on quantity progress and on income progress because it relates to what we expect we are able to ship from an working margin and EPS standpoint.”

PayPal is slated to report fourth-quarter earnings after the bell on Feb. 9.