Tech layoffs: PayPal cuts 2,000 jobs as global economy weakens
Source link PayPal, one of the leading online payment companies, recently announced that it will lay off 2,000 employees in order to adjust to the changing global economic landscape.
The layoffs, which will affect approximately 7 percent of the company’s 27,000 staff globally, are part of a larger restructuring plan to strengthen the company’s operations and drive long-term success. PayPal CEO Dan Schulman said in a statement that the decision was taken to “enhance our organization’s effectiveness, reduce operating costs and improve profitability.”
The layoffs come after PayPal reported weaker-than-expected revenue growth in its second-quarter results, citing a slowdown in the global economy. The company reported $16.55 billion of total payments volume for the quarter, an increase of 19 percent from the same period a year earlier, but far below the 24 percent growth it reported in the previous quarter.
The company said that the restructuring program will help streamline its operations while also allowing it to make necessary investments in growth areas. It also said that it is offering severance packages to all affected employees and assistance in finding new jobs.
The layoffs at PayPal bring attention to the continued struggle of tech startups amid the global economic downturn. Several companies, including Airbnb and Uber, have recently had to let go of employees in order to remain competitive in a market where consumer spending is declining and jobs are drying up.
Though PayPal remains a giant in the payments industry, these layoffs are a grim reminder that no company is immune to the effects of a weakened global economy.