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PayPal is cutting 2,000 employees in a cost-cutting drive

PayPal logo on a phone

PayPal has announced is the latest tech giant to cut jobs after revealing it will lose 2,000 employees.

In a memo to staff, CEO Dan Schulman mentioned a “challenging macro-economic environment.”

The reductions will affect around seven percent of the San Jose company’s workforce in the coming weeks.

READ MORE: IBM ANNOUNCES 3,900 GLOBAL JOB CUTS BUT WILL CONTINUE HIRING IN ‘HIGHER GROWTH’ AREAS

Mr. Schulman said: “While we have made substantial progress in right-sizing our cost structure, and focused 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.”

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But he didn’t go into detail regarding the severance benefits but said they will be “generous.” 

Similarly, there is no disclosure on which teams would be most affected, but Schulman remarked “some organizations” internally will be hit worse than others. 

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It's also unclear if workers for Venmo, PayPal's money-transfer service, would be impacted by this wave of layoffs.

These cuts are part of a larger upheaval in the tech industry, which saw major layoffs at Salesforce and Google earlier this month.

PayPal shares are up two percent on Tuesday, January 31, after a drop of nearly 53 percent over the past year. 

The company under its current name was established in 2000 and has ties to Elon Musk and Peter Thiel.

Source: SFGATE

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