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PayPal has announced 2,500 layoffs as it faces stiff competition in the digital payments arena.
CEO Alex Chriss described the move as a necessary "right-sizing" through direct cuts and eliminating unfilled positions.
It comes just a year after a similar workforce reduction.
The company plans to complete notifications to the affected staff by the end of the week.
PayPal's rivals, including Apple, Zelle, and Block, are increasing pressure in the rapidly evolving digital payments sector.
Chriss, who joined PayPal from Intuit last year, has been tasked with revitalizing the company, particularly its share price.
Its share value has decreased by over 20 percent in the past year.
Despite this pressure, PayPal showed promising signs of a turnaround under Chriss's leadership, with its first earnings report exceeding analyst expectations.
The company recently introduced new AI-driven products and a one-click checkout feature.
These layoffs at PayPal are part of a broader trend in the tech industry, which has seen significant job cuts recently.
According to Layoffs.fyi, over 260,000 jobs were lost in the tech sector last year.
Nearly 100 tech companies, including heavyweights Meta, Amazon, Microsoft, Google, TikTok, and Salesforce, announced job cuts in just the past month.
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The sector itself shed a total of 25,000 jobs in January.
Block, led by Twitter co-founder Jack Dorsey, also started reducing its workforce this week, aiming to cut 1,000 jobs by year's end.
Last year's tech layoffs were attributed to the rapid expansion during the pandemic and subsequent economic challenges, including high inflation and weakened consumer demand.
Meanwhile, some workers in the tech industry are pushing back against these layoffs.
For example, a union representing Google employees has criticized its decision to cut jobs, arguing it is unnecessary given the tech giant's substantial profits.
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