The digital payments corporation PayPal announced on Tuesday that it will lay off roughly 2,000 full-time employees, or about 7% of its overall workforce, as it deals with what it calls “the tough macro-economic climate.”
Some of PayPal’s organizations will be impacted more than others by the cuts, which it said it will make over a number of weeks. The business gave no other details. Among other brands, PayPal is the parent company of Venmo, Xoom, and Honey.
The San Jose, California-based business is the most recent in the technology sector to reduce its workforce. Google, Microsoft, and Salesforce all announced tens of thousands of layoffs in just a month of January.
PayPal said it had engaged in an “information-sharing agreement” with Elliott “to continue working across a range of value-creation opportunities” after activist investor Elliott Management purchased a stake in PayPal last summer for roughly $2 billion at the time.
In order to confront the difficult macroeconomic climate, we made substantial progress over the past year in strengthening and reorganizing our business, said PayPal President and CEO Dan Schulman in a statement on Tuesday. While right-sizing our cost structure and concentrating our resources on our top strategic priorities have seen significant success, there is still more to be done.
The quarterly results for PayPal Holdings Inc. are expected on February 9.
The company’s stock has decreased by nearly 53% during the past 12 months. Tuesday’s closing price was $81.49, up 2.3%.