Due to the current difficult economic conditions, PayPal announced on Tuesday that it plans to reduce its workforce by 7%, or approximately 2,000 full-time employees.
The cuts will be phased in over several weeks, with some departments suffering more than others. There were no additional details provided. PayPal is the parent company of brands such as Venmo, Xoom, Honey, and others.
PayPal, based in San Jose, California, has joined the list of tech companies laying off employees. Google, Microsoft, and Salesforce all announced significant layoffs in January alone.
Activist investor Elliott Management purchased a $2 billion stake in PayPal in the summer of 2022, with the company stating that it entered into a “information-sharing agreement” with Elliott to “continue collaboration across a range of value-creation opportunities.”
PayPal President and CEO Dan Schulman said in a statement earlier this week:
We made significant progress over the past year in strengthening and reshaping our company to address the challenging macroeconomic environment while continuing to invest to meet the needs of our customers. We have made significant progress in right-sizing our cost structure and focusing our resources on our core strategic priorities, but there is still work to be done.
PayPal Holdings Inc. will release its fourth-quarter results on February 9. Despite a 2.3% increase to $81.49 at the close on Tuesday, the stock has fallen 53% in the last year.