PayPal has been laying off workers to cut costs

PayPal has reportedly laid off employees in risk management and operations this week. Bloomberg. This is Newest In a series of layoffs within the company — and it won’t be the last. The payment processor also recently reduced its headcount in Chicago, Omaha, Nebraska and Chandler, Arizona, the publication said. In addition, the company previously disclosed that it will permanently lay off 80 employees working at its headquarters in San Jose, California.

While the company approved plans to cut jobs strategically in 2020, the latest layoffs come after PayPal’s growth showed signs of slowing. In the first quarter of this year, spending on the platform rose 15% to $323 billion, the smallest increase in five years. A lack of supply of certain products may have contributed to the situation due to the global supply chain crisis, as well as the fact that people are returning to in-store shopping after pandemic restrictions eased.

PayPal spent $100 million in severance and other costs related to layoffs, and expects to spend more. In the long run, though, the restructuring will save the company $260 million a year. Payment processors are just one of many tech companies cutting headcount or imposing hiring freezes due to the economic slowdown. Microsoft, Yuan and Nvidia Their hiring will be limited due to plunging share prices and slowing sales and revenue growth. Uber and Lyft They are also cutting hiring as part of cost-cutting measures. More recently, Instacart Announce It’s doing the same to focus on profitability ahead of a planned IPO.

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