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PayPal Plans To Cut 7% Of Its Workforce In Order To Cut Costs

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PayPal Plans To Cut 7% Of Its Workforce In Order To Cut Costs

(CTN NEWS) – The latest fintech company impacted by the economic slowdown, PayPal Holdings Inc, announced on Tuesday that it plans to lay off 7% of its personnel, or roughly 2,000 workers.

The payments company also joins the Big Tech corporations and Wall Street heavyweights in conducting layoffs throughout corporate America as businesses try to control expenses to weather the slump.

PayPal’s decision to maintain strict cost control comes amid decades-high inflation that is eroding customer purchasing power at a time when a potential recession is also a concern.

Pay Pal plans to cut costs by 7

Dan Schulman, the CEO of PayPal

Dan Schulman, the CEO of PayPal, stated that while “we have made great progress in right-sizing our cost structure and focused our resources on our core strategic priorities, we have more work to do.”

The company’s shares, which lost roughly 60% of their value last year, were up about 2% in midday trading.

According to Wedbush analyst Moshe Katri, PayPal is attempting to strategically and financially position itself in anticipation of a slowdown in the economy.

The investment firm Great Hill Capital’s chairman and managing member, Thomas Hayes, told Reuters that,

Payments firm PayPal to lay off 7% of its workforce to cut costs | Fox  Business

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“tech over-hired during the pandemic and reducing workers during a quiet period will enable them to keep margins as conditions rebound.”

In November, PayPal lowered its projection for yearly revenue growth in anticipation of a wider economic slump and stated that it did not anticipate significant growth in its U.S. e-commerce sector during the Christmas season.

At the time, corporate executives claimed that a difficult macroeconomic environment and sluggish e-commerce trends forced the company to be cautious with its forecast.

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Alishba Waris is an independent journalist working for CTN News. She brings a wealth of experience and a keen eye for detail to her reporting. With a knack for uncovering the truth, Waris isn't afraid to ask tough questions and hold those in power accountable. Her writing is clear, concise, and cuts through the noise, delivering the facts readers need to stay informed. Waris's dedication to ethical journalism shines through in her hard-hitting yet fair coverage of important issues.

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