In a statement posted online, PayPal President and CEO Dan Schulman said the company would be laying off 7% of its employees in the coming weeks due to the “challenging macro-economic environment”.
“While we have made substantial progress in right-sizing our cost structure and have focused our resources on our key strategic priorities, we still have work to do,” he said. “We must continue to change as our world, our customers and our competitive landscape evolve.”
Although Schulman said the laid-off workers will be treated with “the utmost respect and empathy,” he didn’t share details of the severance package further than calling it “generous.” He also didn’t provide information on which teams will be most affected.
PayPal has various subsidiaries: PayPal Credit, Swift Financial, Braintree, Venmo, Xoom, Zettle, Simility, Chargehound, Happy Returns, Honey, Hyperwallet and Paidy. All of them are in the financial space in one way or another, mainly credit, lending/financing or payment platforms.
A company spokesperson referred inquiries to Schulman’s statement, but declined to comment further.
The PayPal layoffs are part of a larger trend of job losses in the technology sector. Over the past six months, several companies, mostly based in the United States, have laid off thousands of employees. They include Amazon, Google, Microsoft, Oracle, Salesforce, IBM, SAP, Twitter, Meta, Twilio, Arm, Tesla, PagerDuty, Spotify, Citrix and Tibco.
In total, the recent cuts have affected around 75,000 tech jobs, if you include moves that have been announced but not yet implemented.