PayPal is planning to lay off around nine percent of its workforce. The CEO, Chriss told the staff about the development in a letter on Tuesday. Hours later, the letter was made public by the company.
This decision by PayPal will impact 2500 employees who will find out about their fate from today to the end of the week. These layoffs by PayPal come just a year after they fired more than 2000 workers to keep the costs down.
Employees affected by these layoffs went to LinkedIn to share the news. Despite thousands of job cuts by big tech companies in 2023, the layoffs continue. Companies like Discord, TikTok, Microsoft, iRobot, Amazon, and Unity have collectively cut thousands of jobs already this year. Google CEO Sundar Pichai warned the employees to brace for more job cuts throughout the year.
PayPal was one of the earliest companies in the tech industry that follow suit. Many other companies have entered the payments space in the past few years, which is why PayPal was feeling a little bit of pressure.
The company Chriss said in a letter that we will “continue to invest in areas of the business we believe will create and accelerate growth,”
PayPal is still going forward with the layoff plans despite having strong growth in 2023. The revenue of the company till September 2023 was 7.42 billion USD. This is a nine percent year-on-year increase.
The wave of AI and lack of trust from VCs on big tech could be the reason behind these mass layoffs from almost all tech companies. However, there isn’t any data to support this theory. I feel that these layoffs will continue till we see a saturation in the market.
