Technical layoffs: Fintech company PayPal fires 2,000 employees

Another major technology company, PayPal, announced that it intends to reduce its workforce by 7 percent, or 2,000 employees. This makes it one of the major technology companies that is in the process of trimming its workforce. The fintech company is affected by an economic downturn.

This move is in line with the actions of Big Tech companies and Wall Street giants, who are also implementing layoffs to control costs.

The layoffs come after some major technology companies such as Google, Amazon, Meta and Microsoft have taken a similar approach.

PayPal President and CEO Dan Schulman wrote to employees announcing the move. Below is the public statement to PayPal employees by Dan Schulman.

Over the past year, we have made significant progress in strengthening and reshaping our company to meet the challenging macroeconomic environment, while continuing to invest to meet our customers’ needs. While we have made significant progress in aligning our cost structure and focusing our resources on our core strategic priorities, we have more work to do. We must continue to change as our world, our customers and our competitive landscape evolve.

Dealing with these changes requires us to make difficult decisions that will affect some of our colleagues. Today I am writing to share the difficult news that we will be reducing our global workforce by approximately 2,000 full-time employees, which is approximately 7% of our total workforce. These reductions will take place over the coming weeks, with some organizations more affected than others. We will treat our departing colleagues with the utmost respect and empathy, providing them with generous packages, engaging in consultations where necessary, and supporting them in their transitions. I would like to express my personal appreciation for the meaningful contributions they have made to PayPal.

Change can be difficult—especially when it includes valued colleagues and friends leaving. We will face this head-on together, drawing on the unprecedented scale of our global platform, the strategic investments we have made to strengthen our core capabilities, and the trust and loyalty of our customers.

Over the next few days and weeks, your leaders will share the specific impacts within your business units and teams. Our management team will communicate regularly and openly. This will be a challenging time for our community, but I’m sure we’ll get through it together with compassion for each other, our values ​​at the fore, and a shared commitment to PayPal’s future.

Dan