PayPal reduces workforce by 9%, 2,500 jobs affected
PayPal is set to slash 2,500 jobs, or 9% of its global workforce, as it faces stiff competition from rivals like Apple, Zelle, and Block. CEO Alex Chriss told employees that the cuts were made to "right-size" the company by reducing positions and eliminating open roles. Affected staff will be informed by the end of the week. This comes a year after PayPal made a similar move when it laid off around 2,000 employees.
PayPal's new CEO on a mission to help revive business
Chriss, formerly of software company Intuit, was hired last year to help PayPal bounce back. Investors hope he can boost the company's share price, which has dropped over 20% in the past 12 months. In November, PayPal's first earnings report under Chriss's leadership exceeded analysts' expectations, giving investors hope for a turnaround. Last week, PayPal introduced new AI-driven products and a one-click checkout feature to enhance the payment experience for customers.
PayPal is latest tech company to announce job cuts
PayPal's job cuts follow massive layoffs by other tech giants in recent months. Layoffs.fyi reports that over 260,000 jobs were lost in the sector last year. In the past month alone, nearly 100 tech firms—including Meta, Amazon, Microsoft, Google, TikTok, and Salesforce—announced a total of 25,000 job cuts. This week, Block, led by Twitter co-founder Jack Dorsey, began cutting jobs with plans to trim its workforce by 1,000 by year's end.
