PayPal is planning to cut its global workforce by 9% or about 2,500 jobs this year, according to its CEO Alex Chriss. It comes nearly a year after a similarly sized layoff round.
In January last year, the payments firm laid off around 2,000 employees or around 7% of its global workforce.
PayPal to Layoff More Workers
In a letter to staff sent on Tuesday, Alex Chriss said the decision was made to "right-size" the firm through direct layoffs and removing open roles throughout the year, according to Reuters. The newly appointed CEO of Paypal said the employees who will be affected will be notified by the end of the week.
"We are doing this to right-size our business, allowing us to move with the speed needed to deliver for our customers and drive profitable growth," Chriss noted.
After the market's closure, PayPal also posted the letter to its website. The company's stock price was down 0.13% after the trading day.
On Tuesday, a PayPal spokesperson told SFGATE that 311 workers from its San Jose office were among those being let go but refrained from giving any other information.
PayPal Engineers Flocking to LinkedIn
SFGATE reported that by Tuesday afternoon, PayPal engineers were flocking to LinkedIn with layoff announcements and "Open to Work" posts. According to a February 2023 filing, PayPal's subsidiaries include Venmo and Xoom and had 29,900 total employees as of late 2022.
Last November, Chriss, who took over the CEO post in September, said he expects to raise revenue outside of purely transaction-related volume. He also vowed to turn the company leaner by decreasing its cost base.
PayPal announced last week that it will launch new AI-driven products and a one-click checkout feature, and investors hope that these will continue to help increase PayPal's stock, which has gained 6% this year after falling 14% in 2023.
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