Tech

PayPal laid off workers to reduce costs


PayPal laid off its operations and risk management staff this week, according to reports Bloomberg. That is latest in a series of layoffs within the company – and it won’t be the last. The publication said the payment processor also recently reduced its headcount in Chicago, Omaha, Nebraska and Chandler, Arizona. Furthermore, it had previously revealed that it would permanently lay off 80 people who work at its headquarters in San Jose, California.

While the company has approved a plan to strategically cut its workforce in 2020, the recent layoffs come after PayPal’s growth showed signs of slowing. In the first quarter of the year, spending on the platform grew 15% to $323 billion, which is the smallest growth it has seen in five years. A lack of certain products due to the global supply chain crisis may have contributed to that, as could people’s return to in-store shopping once pandemic restrictions have eased. .

PayPal has already spent $100 million in severance pay and other costs related to job cuts, and it expects to spend more. However, in the long run, the restructuring will save the company $260 million per year. Payment processors are just one of many tech companies that are reducing headcount or implementing hiring freezes due to the economic downturn. 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 hiring as part of their cost-cutting measures. More recently, Instacart announced that they are doing the same thing to focus on profits before the planned IPO.

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