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Layoffs continue as Payment firm PayPal plans to cut off more than 2000 jobs: REPORT
According to reports, payments company PayPal Holdings is looking into laying off roughly 2,500 or 9% of its total workforce employees worldwide in 2024.
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PayPal will be laying off 9% of its workforce in 2024
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PayPal’s fourth quarter earnings report will be released next week
Ever since 2024 began, we've witnessed the biggest of big companies laying off their employees for varied reasons like cost-cutting and with a motive to join the AI race. And now the latest firm to join the layoff trend is payment company PayPal.
According to a letter from CEO Alex Chriss obtained by Reuters on Tuesday, payments company PayPal Holdings plans to cut roughly 2,500 jobs, or 9% of its global staff, this year.
This action is being taken as its new CEO aims to increase profits while reducing expenses. The engineering, research, and development teams at PayPal were among the several teams that were allegedly impacted by the layoffs.
PayPal CEO says the company has decided to 'right size'
The company decided to right-size by making immediate layoffs as well as closing positions that were not filled throughout the year, according to a letter written by the recently appointed CEO Chriss to the employees. By this coming Friday, the impacted staff members will get the notification.
CEO Chriss wrote in the letter, "We are doing this to right-size our business, allowing us to move with the speed needed to deliver for our customers and drive profitable growth." In November, Chriss declared that he planned to boost income beyond transaction volume alone and promised to reduce costs to make the fintech company leaner. The payments company revealed last week that it was introducing new AI-powered products along with a one-click checkout.
Here's what analysts believe
Analyst attention has been drawn to PayPal's margins in the most recent quarters, even though the news had helped boost the stock following third-quarter earnings. While growth in the company's branded products has slowed as a result of growing pressure from rivals like Apple, sales of its low-margin commercial items have climbed significantly.
Changes within the company
PayPal's top management has seen multiple changes in the last few months. As the new CEO, Alex Chriss began working for the company in September 2023. Archie Deskus became the company's chief technology officer in November after taking over as chief information officer. It also hired Jamie Miller as its chief financial officer. PayPal continues to expand with the addition of Fintech startups like Venmo and Honey.
Layoff string
A series of cuts undertaken by tech companies in 2024 include the layoffs. iRobot revealed it was laying off about 350 employees earlier this week. Following a year-long layoff of 10,000 workers, Microsoft let go of 1,900 staff members last week. Last week, the online retailer eBay made around 1,000 layoffs
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