PayPal has laid off workers in risk management and operations this week, according to Bloomberg. It’s the latest in a series of layoffs within the company, and it won’t be the last either. The publication says that the payment processor also recently reduced its number of employees in Chicago, Omaha, Nebraska and Chandler, Arizona. In addition, it previously revealed that it was going to permanently lay off 80 people who worked at its headquarters in San Jose, California.
While the company has approved plans to strategically reduce its workforce in 2020, these recent layoffs come after PayPal’s growth showed signs of slowing. In the first quarter of the year, spending on the platform rose 15 percent to $323 billion, which is the smallest growth it has seen in five years. The unavailability of certain products due to the global supply chain crisis may have contributed to that, as well as the fact that people returned to shopping in the store after pandemic restrictions were relaxed.
PayPal spent $100 million on severance pay and other expenses related to job cuts, and expects to spend even more. In the long run, however, the restructuring will save the company $260 million a year. The payment processor is just one of many tech companies that are downsizing or freezing hiring due to the economic slowdown. Microsoft, Meta and NVIDIA will limit their hiring due to falling stock prices and slowing sales and revenue growth. Uber and Lyft are also cutting back on hiring as part of their cost-cutting measures. More recently, Instacart announced that it is doing the same to focus on profitability ahead of its planned IPO.
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