Global payments processor PayPal plans to reduce its global workforce by 9%, which is equal to about 2 500 jobs.
The news was broken in a letter to PayPal employees from newly-appointed CEO Alex Chriss.
In the letter, Chriss says the measures taken are aimed at “right-sizing” the business for increased agility and faster responses to customer demands.
The decision to cut jobs will encompass direct reductions and the elimination of open roles, with affected employees set to receive notifications throughout the week.
“These decisions were not easy to make, and we are undertaking these actions with tremendous care and consideration,” he writes.
The announcement comes in the wake of recent efforts by tech companies worldwide to adapt to changing market dynamics. The beginning of 2024 has witnessed a wave of job cuts in the industry, with major players such as Amazon, Google, Meta and Salesforce making significant staff reductions.
According to layoff-tracking website Layoffs.fyi, a total of 103 tech companies have retrenched over 28 000 employees globally this year.
The strategic decision by PayPal is framed within a broader context of strategic initiatives outlined in a recent global announcement, which saw the company unveil new products and innovations.
During his address, Chriss outlined several changes, including a focus on driving more efficiency, deploying automation and consolidating technology to reduce complexity.
Chriss expressed confidence in PayPal's potential to create value for employees, customers and shareholders. Looking ahead, he outlined a collective effort over the next year to maximise reach, scale and resources, with the aim of having a greater impact on clients.
“I am confident that our PayPal community will come through this period even stronger, and I am optimistic about the future we will create together.”