Staff Cuts come to PayPal as Tech continues Onslaught against Jobs
Dozens of staffers have been laid off who worked in Chicago, Omaha, Nebraska, and Chandler, Arizona...
As of late, the tech world isn’t boasting its advancement in technology due to shortages in chips and other components as well as other supply chain issues which have led to decreased revenues. The tech world is however boasting record amounts of staffers being laid off and falling next into the category is PayPal. Staffers have begun being released from the risk management and operations sector this week as the firm seeks to get profits back on track.
Dozens of staffers have been laid off who worked in Chicago, Ohama, Nebraska, and Chandler, Arizona. This month PayPal has announced plans to permanently lay off more than 80 people in its San Jose, California Headquarters.
“PayPal is constantly evaluating how we work to ensure we are prepared to meet the needs of our customers and operate with the best structure and processes to support our strategic business priorities as we continue to grow and evolve.”
PayPal’s platform spend climbed just 15% in Q1 to $323 Billion which has been the smallest increase in at least five years. The firm’s former parent company eBay Inc. has also been rapidly moving payments away from PayPal’s platform. The headcount at PayPal has climbed in recent years and last year they’ve topped out at 30,900 employees - 33% up from pre-pandemic levels.
However, now it seems PayPal wants to reverse the tide and last month announced it was working to improve operating leverage. CRO Dan Shulman said the company started simplifying operating models before the pandemic but the explosion in volumes on the platform in early pandemic days caused the company to put that work on the back burner.
“We are now coming back to this work with renewed focus, energy, and purpose.”
Schulman said at that time.
$20 Million has been incurred on PayPal according to a filing. The money comes from the restructuring in Q1 of 2022 after initiating “a strategic reduction of the existing global workforce.” The company also said the majority of the costs came from severance and other employee benefits.
It is now being rumored that another $100 Million will be added to the existing $20 Million as restructuring charges surmount again this year. The job cuts will save PayPal nearly $260 Million a year in employee-related costs.
“We are continuing to review our facility needs due to our new work models. The strategic actions and cash payments associated with this plan are expected to be substantially completed by the fourth quarter of 2022.”
PayPal said in the filing.