The company said the decision would affect 7% of its employees worldwide.
This new information follows Google’s recent announcement to lay off 12,000 workers.
Dan Schulman, the CEO of PayPal, told the company’s employees in an email on Tuesday that the decision was unavoidable because of the “challenging macroeconomic environment.”
He said that over the past year, the company has made a lot of progress in strengthening and reshaping itself to deal with the harsh macroeconomic environment and to keep investing to meet customer needs.
“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. We must continue to change as our world, customers, and competitive landscape evolve.
“Addressing these changes requires us to make hard decisions that will impact some of our colleagues.
“Today, I’m writing to share the difficult news that we will be reducing our global workforce by approximately 2,000 full-time employees, which is about 7 per cent of our total workforce,” Mr Schulman said.
The head of PayPal said that these cuts will happen over the next few weeks, with some businesses being affected more than others.
“We will treat our departing colleagues with the utmost respect and empathy, provide them generous packages, engage in consultation where required and support them with their transitions. I want to express my appreciation for the meaningful contributions they have made to PayPal.
“Change can be difficult particularly when it includes valued colleagues and friends departing. We will face this head-on together, drawing on the unparalleled scale of our global platform, the strategic investments we have made to strengthen our core capabilities, and the trust and loyalty of our customers,” he said.
PayPal is the latest tech company to lay off a lot of people. Twitter, Facebook, Amazon, the IT group Salesforce, Microsoft, and Google have also laid off many people recently.
In early January, Salesforce said it would be firing about 10% of its employees.
Last year, Amazon fired about 3% of its corporate workers and less than 1% of its workers worldwide.
In November 2022, Twitter Inc. fired half its employees because advertisers stopped spending money on Twitter because they worried about how it moderated content.
Meta, the company that owns Facebook, also said it would lay off more than 11,000 workers, cutting its staff by about 13%.
Also, Microsoft said it would lay off about 11,000 of its workers, cutting the company’s workforce by about 5%.
Alphabet, which owns Google, said last month that it would be laying off 6% of its employees worldwide.
