PayPal is set to become the latest technology company to lay off a significant portion of its workforce.
The payments company announced plans to lay off 2,000 employees on Tuesday, accounting for about 7% of its total workforce.
The layoffs will take place over the next few weeks, according to PayPal president and CEO Dan Schulman, with some parts of the company being affected more than others.
Schulman, “We will treat our departing colleagues with the utmost respect and empathy, provide them with generous packages, engage in consultation where required and support them with their transitions.
“I want to express my personal appreciation for the meaningful contributions they have made to PayPal.”
PayPal becomes the latest tech company to join a growing list of tech companies that have announced layoffs.
Google announced plans to lay off 12,000 employees, or roughly 6% of its global workforce, earlier this month. Microsoft had previously stated that it would lay off 10,000 employees.
Schulman, like his counterparts at Microsoft, Google and other tech firms, blamed PayPal’s layoffs on the “challenging macro-economic environment” the company finds itself in recently.
“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,” he said.
Although the US economy has not yet entered a recession. The national unemployment rate is at a 50-year low of 3.5 per cent, and the GDP has increased in recent quarters.
PayPal, in particular, exceeded Wall Street expectations during its most recent earnings call, with revenue and income increasing by 11% and 7% year on year, respectively.