PayPal to fire 2,500 employees to focus on automation
Following the current trend of layoffs and cost-cutting, fintech major PayPal has stated that it would eliminate 9% of its personnel, removing 2,500 people from its global locations. PayPal CEO alex Chriss claimed in an internal message to staff that the firm wants to focus more on efficiency and 'right-data-size our business'.
The employment cuts will take place throughout the year, affecting both existing jobs and job advertisements that PayPal had expected to hire for. According to the internal message, impacted workers will be notified of their job terminations by the end of this week.
"Across our organisation, we need to drive more focus and efficiency, deploy automation, and consolidate our technology to reduce complexity and duplication," Chriss said in his email to employees (as reported by Bloomberg). The company would "continue to invest in areas of the business that we believe will create and accelerate growth," he explained.
PayPal, which had around 29,900 workers by the end of 2022, made a similar decrease in its personnel last January, firing 2,000 people from its global workforce. The new decision will affect around 2,500 people, bringing the total number of layoffs to nearly 4,500 individuals.
According to reports, PayPal has laid off some of its staff in response to its unstable revenue and share performance. The payment giant's shares have declined by more than 20% in the last year as profits fell and the company reduced its full-year adjusted operating margin outlook. Notably, Chriss was appointed by PayPal last year to succeed Schulman.
The issues are partly due to increased rivalry from rivals such as apple Inc. and Zelle. PayPal, formerly the leader in the digital payments system, is failing to stay up with the changing industry. This month, at least four analysts downgraded the stock, citing a variety of factors ranging from increased competition to profitability pressure.
Meanwhile, the recent trend of layoffs has expanded throughout the IT industry. According to a report from layoffs. In the first month of 2024, around 100 internet firms, including Meta, amazon, microsoft, Google, TikTok, and Salesforce, lay off approximately 25,000 employees as part of cost-cutting and restructuring efforts.
Google began the latest wave of job cuts by laying off over a thousand people in its Assistant and hardware divisions, and has warned that more layoffs will follow. amazon followed suit, cutting off 500 Twitch employees and hundreds more at amazon Prime. Salesforce also decreased its headcount by 700 in January, while iRobot laid off roughly a third of its employees. microsoft joined the list by laying off 1,900 employees from Activision Blizzard and Xbox. Other firms that have announced layoffs include Flipkart, Swiggy, and others.
The employment cuts will take place throughout the year, affecting both existing jobs and job advertisements that PayPal had expected to hire for. According to the internal message, impacted workers will be notified of their job terminations by the end of this week.
"Across our organisation, we need to drive more focus and efficiency, deploy automation, and consolidate our technology to reduce complexity and duplication," Chriss said in his email to employees (as reported by Bloomberg). The company would "continue to invest in areas of the business that we believe will create and accelerate growth," he explained.
PayPal, which had around 29,900 workers by the end of 2022, made a similar decrease in its personnel last January, firing 2,000 people from its global workforce. The new decision will affect around 2,500 people, bringing the total number of layoffs to nearly 4,500 individuals.
According to reports, PayPal has laid off some of its staff in response to its unstable revenue and share performance. The payment giant's shares have declined by more than 20% in the last year as profits fell and the company reduced its full-year adjusted operating margin outlook. Notably, Chriss was appointed by PayPal last year to succeed Schulman.
The issues are partly due to increased rivalry from rivals such as apple Inc. and Zelle. PayPal, formerly the leader in the digital payments system, is failing to stay up with the changing industry. This month, at least four analysts downgraded the stock, citing a variety of factors ranging from increased competition to profitability pressure.
Meanwhile, the recent trend of layoffs has expanded throughout the IT industry. According to a report from layoffs. In the first month of 2024, around 100 internet firms, including Meta, amazon, microsoft, Google, TikTok, and Salesforce, lay off approximately 25,000 employees as part of cost-cutting and restructuring efforts.
Google began the latest wave of job cuts by laying off over a thousand people in its Assistant and hardware divisions, and has warned that more layoffs will follow. amazon followed suit, cutting off 500 Twitch employees and hundreds more at amazon Prime. Salesforce also decreased its headcount by 700 in January, while iRobot laid off roughly a third of its employees. microsoft joined the list by laying off 1,900 employees from Activision Blizzard and Xbox. Other firms that have announced layoffs include Flipkart, Swiggy, and others.