Paypal layoffs are set to be the latest addition to the tech layoffs of 2023. According to Layoffs.fyi 2.000 jobs are in danger.
PayPal revealed on Tuesday its plan to cut 2,000 jobs, which is approximately 7% of its employees, as stated in a statement on the company’s website. CEO Dan Schulman mentioned in the statement that the company is taking action due to the difficult economic situation and that they have made progress in streamlining their priorities and expenses, but still have more to do.
On the Paypal layoffs, the CEO Dan Schulman stated:
“Change can be difficult – particularly when it includes valued colleagues and friends departing,” Schulman wrote about the layoffs. “We will face this head-on together, drawing on the unparalleled scale of our global platform, the strategic investments we have made to strengthen our core capabilities, and the trust and loyalty of our customers.”
-Dan Schulman, CEO of Paypal
The challenging macroeconomic environment is the reason behind Paypal layoffs
PayPal is following in the footsteps of big tech companies and financial powerhouses in cutting jobs as companies seek to control expenses amid the economic downturn. The payment company is taking steps to limit costs while consumers are facing decades-high inflation and the risk of a recession.
Executives at PayPal stated that the challenging economic situation and slowing growth in e-commerce is driving the company to be cautious with its projections. Due to all these Paypal layoffs are set to end the jobs of around 2,000 employees.
About the Paypal layoffs company’s chairman said that it is a result of a ”challenging macroeconomic environment,”.
The economic downturn has impacted Paypal a lot
PayPal’s third-quarter earnings report showed that the company exceeded earnings and revenue expectations, but its stock price dropped after the fourth-quarter revenue estimate fell below analysts’ predictions. However, PayPal increased its earnings per share guidance for the full fiscal year, citing the benefits of ongoing cost-saving measures.
During the earnings call with analysts, acting CFO Gabrielle Rabinovich discussed the company’s projections for 2023.
“We’re operating in an environment where we think we’re going to continue to have inflationary pressures, where real wage growth is going to continue to be negative for a period of time, where discretionary spend will be under pressure,”
“We’re navigating that environment as best we can, and we’ve taken into consideration that range of outcomes on volume growth and on revenue growth as it relates to what we think we can deliver from an operating margin and EPS standpoint.”.
-Paypal CFO Gabrielle Rabinovich
Why are tech layoffs of 2023 happening?
Tech companies may lay off employees for various reasons, including business changes, market factors, and economic conditions. They may also lay off staff to lower expenses, reorganize, or focus on more profitable areas of the business. The COVID-19 pandemic has had a significant impact on the economy and has caused widespread layoffs in multiple industries, including technology.
According to Crunchbase News, over 46,000 employees of US tech companies have already been laid off in 2023, with the year only just starting. This figure includes the recent layoffs announced by Alphabet (Google’s parent company) and Microsoft, with 12,000 and 10,000 job cuts respectively.
The rising prices and unstable stock market have led to both public and private tech companies laying off more than 107,000 employees in the past year. Startups are now facing a tough market as venture capital dries up and the economy adjusts to a trend of excessive hiring and high valuations.
That’s the end of our Paypal layoffs writing. Together with the changes to consumer habits following the end of the pandemic era, tech companies have been struggling a lot lately. We hope you aren’t affected by the recent Paypal layoffs. Check out our writing on the summary of tech layoffs of 2022 if you wish to investigate the layoffs of last year.