PayPal layoffs of approximately 2,000 employees to streamline costs and focus on core strategic priorities amidst the challenging macroeconomic environment while meeting customers’ needs.
Heaptalk, Jakarta — Online payment provider company PayPal announced the layoff of 7% of its global workforce or around 2,000 employees. This hard decision was blamed on the challenging macroeconomic environment that has occurred in recent years, making the company restrain costs and focus on its core strategic priorities.
“Today, I am 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,” conveyed President and CEO of PayPal Dan Schulman in a message to PayPal employees (01/31).
Further, he delivered, “We made significant progress in strengthening and reshaping the company to address the challenging macroeconomic environment while continuing to invest to meet our customers’ needs.”
“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. We must continue to change as our world, our customers, and our competitive landscape evolve,” said Dan.
Expanding to Japan’s market through Paidy in 2021
As reported by Reuters, in November 2022, PayPal slashed its annual revenue growth forecast to anticipate a wider economic plunge. The company did not expect better growth in its e-commerce business in the US in Q4 2022. The challenging macro environment and slowing e-commerce trends bring PayPal to be cautious in forecasting revenue growth, according to the executives at the company.
Currently, PayPal platform has been utilized by 432 million consumers and merchants in more than 200 markets. In 2021, PayPal and one of its subsidiaries, Venmo, launched a new digital wallet service, providing people with a single destination to manage their financial lives.
PayPal also introduced a feature called Checkout with Crypto, offering customers a safe and easy way to pay using cryptocurrency. Last year, Japan’s deferred online payment service for online shops, Paidy, joined PayPal to expand PayPal’s presence in Japan as a “buy now, pay later” platform.
