PayPal To Cut 2,000 Jobs In Latest Tech Company Cost-Cutting

(SAN JOSE, Calif.) — PayPal said Tuesday that it will cut about 7% of its total workforce, or about 2,000 full-time employees, as it deals with what it calls a “challenging macroeconomic environment.”

PayPal said the cuts would be phased in over several weeks, with some organizations suffering more than others. The company did not elaborate. The is the parent company of several brands, including Venmo, Xoom, and Honey.

The San Jose, California-based company is the latest in the technology sector to reduce its workforce. Google, Microsoft, and Salesforce alone announced tens of thousands of layoffs in January.

Paypal Is Resizing Its Cost Structure

Last summer, activist investor Elliott Management purchased a $2 billion stake in stock, which announced a “information-sharing agreement” with Elliott “to continue collaboration across a range of value-creation opportunities.”

“Over the past year, we made significant progress in strengthening and reshaping our company to address the challenging macroeconomic environment while continuing to invest to meet the needs of our customers,” PayPal President and CEO Dan Schulman said in a statement on Tuesday. “We have made significant progress in right-sizing our cost structure and focusing our resources on our core strategic priorities, but there is still work to be done.”

PayPal Holdings Inc. is set to report quarterly results on February 9.

The company’s stock is down about 53% in the last year. They gained 2.3% to close at $81.49 on Tuesday.

SOURCE – (AP)