PayPal is the umpteenth technology company to make layoffs. The payments platform announced plans to lay off 2,000 of its employees.
That number is equivalent to 7% of PayPal's total employees. According to PayPal CEO and President Dan Schulman, these layoffs will occur in the next few weeks and some divisions of the company will be impacted more than others.
"We will treat our departed colleagues with the utmost respect and empathy, provide generous severance pay, engage in consultation when needed, and support their transition," Schulman said, as quoted from Engadget, Wednesday (1/2/2023).
"I want to express my personal appreciation for the meaningful contribution they have made to PayPal," he continued.
PayPal follows other tech giants announcing layoffs in recent months. Not long ago, Google revealed its plans to lay off 12,000 employees.
Previously, Microsoft said it would cut 10,000 employees and Salesforce announced it would lay off 7,000 employees. In the last year it is estimated that more than 75,000 technology employees were laid off due to layoffs.
Just like other technology companies, Schulman said PayPal was forced to lay off because of the challenging macroeconomic conditions they have faced recently, including the threat of recession and weakening consumer purchasing power.
"While we have made substantial progress in adjusting our spending structure, and focusing our resources on our core strategic priorities, we still have more work to do," said Schulman.