The job cuts, driven by the company’s strategy to reshape and change with the competitive landscape, will be executed in the coming few weeks to address the challenging macro-economic environment
PayPal to cut 2000 jobs. (Credit: Marques Thomas on Unsplash)
US-based online payments company PayPal has unveiled its plans to lay off around 2,000 full-time employees, which represent around 7% of the company’s total workforce.
The company said that it had to reshape itself and change with the competitive landscape to address the challenging macro-economic environment.
The job cuts will be executed in the coming few weeks, with some organisations posing more impact than others, said the payments firm.
PayPal said that the departing colleagues will be treated with utmost respect and empathy, and will be provided with generous packages.
The company promised to engage in consultation, and support them with their transitions.
PayPal president and CEO Dan Schulman said: “I want to express my personal appreciation for the meaningful contributions they have made to PayPal.
“Over the next days and weeks, your leaders will share the specific impacts within your business units and teams. Our leadership team will communicate regularly and openly.
“This will be a challenging period for our community, but I am confident we will come through it together with compassion for each other, our values at the fore, and a shared commitment to the future of PayPal.”
In a separate development, online lending platform SoFi is laying off 65 employees from its mortgage division, and AI-powered lending platform Upstart is laying off 365 employees due to reduced demand for lending.
According to Wall Street Journal, SoFi has recently hired around 20 employees from digital mortgage start-up Clara Lending to automate its mortgage process.
The company has made some changes to its structure to have the right people in the right roles and locations to support its growth and is currently hiring more than 175 people.
Upstart said in its filing with the Securities and Exchange Commission (SEC) that the job cuts will form about 20% of its current workforce.
In addition to job cuts, the company is planning to hold the development of its small business loan product until macroeconomic conditions are improved.