PayPal announced on Tuesday that it plans to lay off approximately 2,000 full-time employees, which is about 7% of its total workforce, due to the difficult economic conditions.
PayPal stated that the layoffs will be implemented gradually over a period of several weeks, with some divisions experiencing greater impact than others. The company did not provide additional details. It is pertinent to mention here that PayPal is the parent company of popular brands such as Venmo, Xoom, and Honey.
PayPal, based in San Jose, California, has joined the trend of tech companies reducing their workforce. In January alone, major tech companies such as Google, Microsoft, and Salesforce revealed plans to lay off tens of thousands of employees.
Last year, activist investor Elliott Management purchased a $2 billion stake in PayPal. The company announced that it had entered into an agreement with Elliott to share information and collaborate on potential growth opportunities.
PayPal CEO Dan Schulman stated on Tuesday that the company has made substantial progress in the past year by enhancing and restructuring to handle the difficult economic environment and simultaneously investing to satisfy customer demands.
“Despite significant progress in optimizing our cost structure and directing our resources towards our primary strategic objectives, there is still more to be accomplished.”
The quarterly results of PayPal Holdings Inc. are set to be released on February 9th.
Over the past year, the company’s shares have declined by approximately 53%. However, on Tuesday they rose 2.3% and closed at $81.49.