On Tuesday (30 Jan), American financial technology firm PayPal revealed plans to lay off 2,500 employees — around 9% of its workforce.
Source: Bongkarngraphic on Canva
Announcing the layoffs via a letter to employees, PayPal CEO Alex Chriss said the move was to assist with the restructuring of the business.
Affected staff would be informed of the termination of their employment between 30 Jan and the end of the week.
The letter that PayPal employees received from Mr Chriss was made public via a press release on its website.
In the letter, Mr Chriss shared that the company would be cutting down its global workforce by about 9%.
This translates to about 2,500 employees, according to BBC News.
Source: PayPal
Stating that the layoffs would comprise both direct reductions and the elimination of open roles, he added:
We are doing this to right-size our business, allowing us to move with the speed needed to deliver for our customers and drive profitable growth.
“At the same time, we will continue to invest in areas of the business we believe will create and accelerate growth,” he continued.
Those affected by the layoffs will be notified between 30 Jan and the end of the week.
Mr Chriss noted that the decisions were necessary to “drive more focus and efficiency, deploy automation, and consolidate [their] technology to reduce complexity and duplication”.
PayPal CEO Alex Chriss
Source: PayPal
“These decisions were not easy to make, and we are undertaking these actions with tremendous care and consideration,” he added.
All decisions are subject to consultation, where required by law. True to our values, we will support our employees’ transitions with the utmost respect, support, and compassion.
He noted that moving forward, the company would work together to maximise their reach, scale, and resources.
Despite the ominous outlook by Mr Chriss in his letter to employees, the company had in fact experienced significant growth throughout 2023.
In the third quarter of last year, PayPal claimed to have enjoyed a “solid performance” that was beyond expectations.
However, in a separate report by The Information, the company’s CEO said in November 2023 that its costs were still “too high” and were slowing the firm down.
These layoffs by PayPal come a year after it cut over 2,000 jobs — or 7% of its workforce — in an effort to deal with rising costs.
Also read: Google Lays Off Hundreds Of Employees, Engineering & Hardware Teams Among Those Affected
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Featured image adapted from PayPal.
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