PayPal to lay off 2,000 employees
PayPal will be laying off 7% of its workforce and firing 2,000 employees in the coming weeks. The move is intended to cut costs and improve productivity for the company which currently has over 20,000 employees.
PayPal, the global payments platform that allows people to send money and make purchases on their phones, announced today that it will be reducing its workforce by 7% due to a major transformation in our businesses. We are still hiring as quickly as possible to support this transition and keep up with demand as we continue to grow.
PayPal, Inc. (NASDAQ: PYPL) is a global Smarter Commerce company that connects consumers and businesses through the power of digital payments. PayPal’s mission is to democratize financial services by creating an environment where anyone can take part in commerce anytime, anywhere.
PayPal to lay off 7% of its workforce, fire 2000 employees
The company, based in San Jose, California, is the largest payments processor in the world, processing hundreds of billions of dollars each year. It was founded by Peter Thiel and Max Levchin in the early 1990s.
This will give the company the flexibility to manage its business efficiently and makes room for new hires when needed. The online payment service will take steps to cut $300 million in expenses and increase its focus on marketing, technical innovation, and mobile experience.
The job cuts amount to about 1% of PayPal’s global workforce of 20,000 people. Most of the cuts are expected to be made at its global headquarters in San Jose and its European operations center in London
PayPal, Inc. is engaged in electronic payment and financial services businesses. The Company provides PayPal Payments products and services to businesses, consumers, and other entities worldwide. Its services include online payment solutions to manage inventory, purchase orders, and other commercial transactions; consumer financing functionality via branded cards within its PayPal Anywhere debit card program; and transaction processing of business-to-consumer (B2C) payments globally through its PayPal B2B division.
The company has said that these changes are intended to help them better focus on their core areas of growth. The move is expected to cost the company $400 million in severance payments and related costs. The company is just the latest in a string of companies that have reduced their headcounts following disappointing third-quarter earnings reports.
PayPal to lay off 2,000 employees in coming weeks
This is a major restructuring effort that will take place over the next several months. The people currently laid off will be offered early retirement or severance packages.
CEO Dan Schulman said that the cuts were made because “we’re seeing good signs for future growth”, though this did not ease concerns over. How PayPal could continue to compete against massive companies like Amazon and Apple. That have created their forms of payment systems.
PayPal is a global online and mobile payments company. That makes it easy to send money, get paid, and save money.
It works around the world to build trust, making it easier for people to use their bank accounts and mobile devices to pay and get paid. PayPal is a global company based in San Jose, California. It has over 175 million active account holders who are conducting millions of transactions every day. Through its business application programming interface (API). PayPal enables anyone to instantly integrate digital payment services directly into any website or mobile application.
In a statement, the company said that the actions are necessary to strengthen its business portfolio. The company has been struggling with the challenges of mobile payments. And recently announced an acquisition of small business lending site Earnest for $800m.
PayPal Company Profile
PayPal, the online payment and financial services company founded by CEO and founder Elon Musk has revealed. That it will cut its global workforce by coming weeks by 7 percent. The company will make the move to improve efficiency and competitiveness across its businesses. This comes as the company continues to face increased competition from cheaper competitors like Apple Pay and AliPay.
The reduction is set to take place over the next several months and involves voluntary layoffs and open-source job openings. The Wall Street Journal reported it as one of several plans. That may be implemented by PayPal as part of its effort to align itself with the future needs of its customers. The latest cuts are expected to affect all areas such as finance and customer service, IT, and operations.
PayPal is an online payment company, which pioneered online shopping. It processes and transmits payments. As well as provides digital wallets for storing, sending, and withdrawing money. The company offers a wide range of services including bill payments, gift cards, e-commerce, and other financial services. The company’s stock price has fallen more than 50% since its 2015 IPO