PayPal has confirmed that it will be laying off around 9% of its workforce, accounting for an estimated 2,500 workers.
An official announcement by President and CEO Alex Chriss framed the change as one that would help to “right-size” PayPal to stay competitive in an evolving market, indicating that the company’s growth isn’t aligning with its headcount.
Affected staff members will be informed this week, signalling a swift introduction of PayPal’s restructuring plan to streamline costs and improve operational efficiency.
PayPal lays off another 2,500 workers
This isn’t the first time that PayPal has had to get rid of workers as a result of a challenging economy. Almost exactly a year ago, on January 31, 2023, the company announced that it would be cutting around 2,000 jobs, equalling 7% of its then headcount.
Moreover, PayPal joins a growing list of companies having to make workers redundant this year, with January’s total coming to around 29,000, according to layoffs.fyi. In 2023, a total of 262,000 tech industry workers were affected, with just shy of 90,000 workers being laid off last January.
Within hours of PayPal’s announcement, rival company Block also announced a similar 10% staff reduction, accounting for the loss of around 1,000 jobs.
PayPal’s move comes in response to a more than 20% decline in share price over the past 12 months, from a 52-week high of $88.63 to a January 31, 2024 close of $63.76.
Details about the support packages available to staff have not been disclosed, however the company shared: “True to our values, we will support our employees' transitions with the utmost respect, support, and compassion.”
PayPal did not add any further comment when we contacted the company for any further context.
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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!