PayPal laid off employees in its risk management and operations this week, according to Bloomberg.
It’s the latest in a string of layoffs within the company — and it won’t be the last, either.
The publication says the payment processor has recently reduced its staff numbers in Chicago, Omaha, Nebraska and Chandler, Arizona.
Moreover, sources indicated that PayPal previously revealed that it will permanently lay off 80 people working at its headquarters in San Jose, California.
While the company has agreed to plans to strategically reduce its workforce in 2020,
these recent layoffs come after PayPal’s growth has shown signs of slowing.
In the first quarter of the year, spending on the platform increased 15 percent to $323 billion, its lowest growth in five years.
The unavailability of some products due to the global supply chain crisis may have contributed to this,
as well as the fact that people have returned to shopping in stores after the easing of pandemic restrictions.
PayPal has spent $100 million on severance payments and other expenses related to job cuts, and expects to spend more.
But in the long run, the restructuring will save the company $260 million annually.\
The payment processor is just one of many tech companies that are downsizing or implementing a hiring freeze due to the economic slowdown.
Microsoft, Meta, and NVIDIA will also limit their hiring due to lower stock prices and slowing sales and revenue growth.
Uber and Lyft are also reducing hiring as part of cost-cutting measures. Recently, Instacart announced that it is doing the same in order to focus on profitability ahead of its planned IPO.
