Tech giants’ bloodbath continues: PayPal is latest to slash 2,000 jobs – about 7% of its workforce
Tech giants’ bloodbath continues: PayPal is latest to slash 2,000 jobs – about 7% of its workforce – as Amazon, Google and Microsoft are among those who laid off thousands
- PayPal said it will make the cuts over several weeks
- The company noted that some organizations will be affected more than others
PayPal said Tuesday it will trim about 7% of its total workforce, or about 2,000 full-time workers, as the digital payments company contends with what it calls ‘the challenging macro-economic environment’.
PayPal said it will make the cuts over several weeks, with some of its organizations affected more than others. The company did not further specify. PayPal is the parent of Venmo, Xoom and Honey, among other brands.
‘Over the past year, we made significant progress in strengthening and reshaping our company to address the challenging macro-economic environment while continuing to invest to meet our customers´ needs,’ PayPal President and CEO Dan Schulman said Tuesday in a statement.
‘While we have made substantial progress in right-sizing our cost structure, and focused our resources on our core strategic priorities, we have more work to do.’
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PayPal said it will make the cuts over several weeks, with some of its organizations affected more than others. The company did not further specify
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President and CEO of PayPal Dan Schulman (file photo). ‘While we have made substantial progress in right-sizing our cost structure, and focused our resources on our core strategic priorities, we have more work to do, ‘ Schulman said Tuesday in a statement
The company based in San Jose, California, is the latest in the technology sector to trim its headcount. During the month of January alone, Google, Microsoft and Salesforce announced tens of thousands of layoffs. This has mostly been put down to a need to reduce costs as economic growth slows down around the world.
Last summer activist investor Elliott Management bought a stake then worth about $2 billion in PayPal, which said it had entered into an ‘information-sharing agreement’ with Elliott ‘to continue collaboration across a range of value-creation opportunities’.
PayPal Holdings Inc. is scheduled to report quarterly results on February 9.
Shares of the company are down about 53% in the past year. They rose 2.3% to close Tuesday at $81.49.
‘We will continue to invest in our business and hire in key growth areas in the year ahead.’
Microsoft executives previously announced in July that it was laying off less than 1% of its workforce and significantly slow hiring, as its revenue fell short of investor expectations.
The company recorded only $51.9 billion in revenue during the second quarter of the year, but was expected to rake in $52.4 billion.
It had previously recorded blockbuster growth during the COVID pandemic, when consumers and businesses turned to its products as they shifted to a work-from-home model.
Lyft
Ride-hailing firm Lyft said it would lay off 13% of its workforce, or about 683 employees, after it already cut 60 jobs earlier this year and froze hiring in September.
Lyft said in a regulatory filing it would likely incur $27 to $32 million in restructuring charges related to the layoffs.
‘We are not immune to the realities of inflation and a slowing economy,’ Lyft’s founders wrote in the memo to staffers.
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Ride-hailing firm Lyft said it would lay off 13% of its workforce, or about 683 employees, after it already cut 60 jobs earlier this year
The company’s share price has dropped 76% since the start of the year and currently stands at around $10, compared to nearly $45 in January.
Announcing the job cuts in a memo seen by the Wall Street Journal, Lyft founders John Zimmer and Logan Green told staff: ‘There are several challenges playing out across the economy.
‘We’re facing a probable recession sometime in the next year and rideshare insurance costs are going up.
‘We worked hard to bring down costs this summer: we slowed, then froze hiring; cut spending; and paused less-critical initiatives.
‘Still, Lyft has to become leaner, which requires us to part with incredible team members.’
Lyft has around 4,000 employees, not including its drivers.
Spotify
The music streaming service said on January 22 it plans to cut 6% of its workforce, an estimated 588 employees from its 9,800 full time staff.
Spotify said it will incur about $38million in severance-related charges.
The company, whose CEO is Daniel Ek, said its chief content and advertising business officer Dawn Ostroff will also depart.
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Spotify said on January 22 it plans to cut 6% of its workforce, an estimated 588 employees
Apple
Though Apple has not yet announced any major layoffs, CEO Tim Cook told CBS Mornings that it is slowing some hiring as well.
‘What we’re doing as a consequence of being in this period, is we’re being very deliberate in our hiring,’ he said.
‘That means we’re continuing to hire, but not everywhere in the company are we hiring.’
At the same time, though, Cook said ‘we don’t believe you can save your way to prosperity’.
‘We think you invest your way to it,’ he said.