Payment platform Paypal is now the latest tech firm that is set to undergo massive layoffs in the next few weeks. Yesterday, the platform’s President and CEO, Dan Schulman made the announcement highlighting that approximately 2,000 employees will lose their jobs which translates to 7% of the firm’s workforce.
PayPal CEO indicated that while the firm had made considerable headway when it comes to cost structure and strategic use of resources, the firm is still not quite there and that there’s more that can be done.
In the press release headlined “Update on Our Transformation” the company’s CEO, Dan Schulman noted that:
Addressing these changes requires us to make hard decisions that will impact some of our colleagues. Today, I’m writing to share the difficult news that we will be reducing our global workforce by approximately 2,000 full time employees, which is about 7% of our total workforce. These reductions will occur over the coming weeks, with some organizations impacted more than others. We 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. I want to express my personal appreciation for the meaningful contributions they have made to PayPal.
Moving forward the company aims to continue evolving and adapting to the ever-changing trends and economic state in a bid to match the needs of its customers while maintaining an even playing field with its competitors.
PayPal is not unique in its current position. Last month, Microsoft announced its plan to cut 10,000 employees over the next two months in a bid to adapt to platform shifts. Google also joined the fray and announced that it will be relieving 12,000 people of their duties in the company because of a “different economic reality”.