PayPal will lay-off about 2,000, or 7 percent of its global employees, according to a statement from CEO Dan Schulman on its website Jan. 31. The fintech company follows other big tech players in cutting jobs throughout the month of January, with Google slashing more than 12,000 employees from its workforce, Microsoft laying off 10,000, and Salesforce letting go of 8,000.
Citing a looming recession, rising interest rates, and e-commerce stagnation, Schulman claims that while the company has honed its strategic priorities like cutting costs, executives “still have more work to do.”
Some business units will be affected more than others, according to the memo, though no specifications have been made. Schulman says that lay-offs are set to begin over the coming weeks, promising affected employees “generous” severance packages and support throughout their transitions.
PayPal is an online payment site founded in 2002 through a merger between two money-transfer companies: X.com, founded by Elon Musk, and Confinity, founded by Peter Thiel. The company was acquired by eBay in 2002 for $1.5B, becoming independent again in 2015. Its current net worth stands at around $90B.