The cuts will affect 7% of the company’s total workforce.
PayPal is poised to become the latest tech company to lay off a significant portion of its workforce. The payments firm announced Tuesday plans to lay off about 2,000 employees, which equates to about seven percent of its total staff. According to PayPal president and CEO Dan Shulman, the layoffs will happen over the next few weeks, with some parts of the company being affected more than others, Engadget wrote on the topic.
“We will treat our departing colleagues with the utmost respect and empathy, provide them with generous packages, engage in consultation where necessary, and support them in the transition. I want to express my personal appreciation for the significant contribution they have made to PayPal.”
The company joins a growing list of tech companies that have announced layoffs in recent months. Earlier this month, Google revealed plans to lay off 12,000 employees, or about six percent of its global workforce. Microsoft previously said it would cut 10,000 jobs. Shulman, like his counterparts at Microsoft, Google and other tech firms, blamed the PayPal layoffs on the “difficult macroeconomic environment” the company has found itself in recently.
It’s worth noting that the U.S. economy has not yet entered a recession. The country’s unemployment rate of 3.5% is at a 50-year low and gross domestic product has grown in recent quarters. Turning specifically to PayPal, the company beat Wall Street’s expectations on its last earnings call, with revenue and earnings up 11% and 7% year-over-year, respectively.