PayPal will lay off 9% of its employees

PayPal has confirmed a workforce reduction of 9%, affecting an estimated 2,500 employees. This decision follows a previous reduction of over 2,000 staff a year earlier as a cost-control measure. Amidst increasing competition in the financial sector, PayPal’s CEO Alex Chriss has stated the company is entering a new phase of development. Despite reporting a revenue of $7.42 billion by the end of last September, a growth of 8% from the previous year and surpassing market expectations, the need for layoffs persists.

Chriss acknowledged the high operational costs and intensifying competition in the financial services industry during a financial report meeting. PayPal aims to streamline costs through layoffs while focusing on more lucrative business ventures. This downsizing trend is not isolated to PayPal; other tech companies like Twitter, Block, Google, Amazon, and Microsoft have also announced cuts, signaling a continued wave of layoffs in the tech sector from 2023 into 2024, despite ongoing recruitment efforts.