American multinational financial technology company PayPal has announced a wave of layoffs that will impact some 2,000 employees, joining a slew of tech firms announcing job cuts aimed at reducing costs.
The decision to cut around 7% of its global workforce will help address the “challenging macroeconomic environment,” President and CEO Dan Schulman wrote in his message to employees published on Tuesday.
“Change can be difficult – particularly when it includes valued colleagues and friends departing,” the statement reads. “These reductions will occur over the coming weeks, with some organizations impacted more than others.”
Schulman promised the company “will treat our departing colleagues with the utmost respect and empathy, provide them with generous packages, engage in consultation where required, and support them with their transitions.”
PayPal has become the latest in a caravan of tech giants forced to shed employees due to dropping revenues and a worsening economic outlook following an unprecedented growth during Covid-19 pandemic lockdowns.
Last week, Swedish audio streaming company Spotify said it will cut around 600 employees. Amazon, Meta and Microsoft all announced layoffs recently. Alphabet, which owns Google, said it would shed 12,000 jobs, more than 6% of its global workforce. IBM is also firing around 1.4% of its total staff. Overall, Big Tech layoffs have claimed an estimated 70,000 jobs over the past year.