PayPal has initiated a company-wide layoff, as reported by The Information. The exact number of employees affected by the job cuts has not been confirmed, but reports suggest that it could be in the thousands. Bloomberg has reported that approximately 9% of the company, which translates to around 2,500 individuals, will be impacted.
Key Takeaway
PayPal has initiated a company-wide layoff, with reports suggesting that thousands of employees could be affected. The fintech giant has been navigating challenges in the competitive landscape and is undergoing significant leadership changes.
Changes in Leadership
Over the past year, PayPal has witnessed significant changes in its executive team. Alex Chriss took on the role of CEO in September, following a lengthy tenure at Intuit. Chriss expressed his intention to expand revenue beyond transaction-related volume. Additionally, Archie Deskus transitioned from the position of chief information officer to chief technology officer, while Jamie Miller was appointed as the chief financial officer.
Challenges and Lawsuits
Despite its acquisitions of fintech companies like Venmo, Xoom, and Honey, PayPal has faced challenges in competing with industry rivals such as Apple and Stripe. In December, reports emerged that Amazon was discontinuing Venmo as a payment option. Moreover, PayPal was confronted with a class action lawsuit in October, alleging that its anti-steering rules hinder competition against lower-cost payment platforms like Stripe and Shopify.
Previous Layoffs
This recent round of layoffs follows PayPal’s announcement last year to reduce its workforce by 7%, affecting approximately 2,000 employees. In May 2022, dozens of employees were laid off from the company’s San Jose headquarters.
