Shulou(Shulou.com)11/24 Report--

On Tuesday, local time, online payment giant PayPal announced plans to cut 2000 jobs, accounting for about 7% of its workforce. Layoffs will begin in the coming weeks.

Dan Schulman, president and chief executive of PayPal, said the company was grappling with a "challenging macroeconomic environment". He said that PayPal had made progress in focusing resources on core priorities and adjusting the cost structure, but that much remained to be done.

"change can be difficult, especially when important colleagues and friends leave," Schulman said of layoffs. With the unparalleled size of our global platform, our strategic investment to strengthen our core competencies, and the trust and loyalty of our customers, we will face this challenge together. "

He also said that laid-off employees will receive severance pay and other support after leaving the company. "We will give our outgoing colleagues the greatest degree of respect and sympathy, provide them with generous severance compensation and consult them when needed," he said. "I am personally grateful for their great contribution to PayPal."

PayPal's layoff announcement marks the latest round of layoffs in the technology industry, and Workday announced plans to cut 525 jobs on Tuesday. Earlier this month, Meta, Alphabet, IBM, Microsoft, Twitter, Spotify, Stripe, Amazon and Salesforce all announced massive layoffs.

During the worst period of COVID-19 's epidemic, many enterprises wantonly recruited employees. But this year, the advertising revenues of these technology companies have fallen because of concerns about inflation and the global economic slowdown caused by the Fed's subsequent rate hike, and their business environment has changed, forcing them to take cost-saving measures.

PayPal reported better-than-expected revenue and earnings in the third quarter, but its fourth-quarter revenue fell short of analysts' expectations, causing the company's share price to fall. However, PayPal raised its earnings per share guidance for the full fiscal year, saying it benefited from "ongoing productivity improvements".

In a conference call with analysts after PayPal released its third-quarter results, acting chief financial officer Gabriel Rabinovich talked about the company's outlook for 2023.

"our current environment indicates that inflationary pressures will persist, real wage growth will remain negative for some time, and discretionary spending will come under pressure," Rabinovich said at the time. We are doing our best to deal with this environment, and we have taken into account the impact of sales growth and revenue growth, as this is related to our goals that can be achieved in terms of operating margins and earnings per share. "

PayPal shares closed up 2.32% at $81.49 on Tuesday local time. As of this article, the stock fell slightly in after-hours trading. PayPal is scheduled to announce fourth-quarter 2022 results after the opening of trading on February 9.

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