PayPal Holdings Inc (NASDAQ:PYPL) has become the latest technology firm to slash jobs in a bid to reduce costs, saying on Tuesday it would cut 7% of its global workforce.
Some 2,000 jobs will be lost at the online payment giant, chief executive Dan Schulman said in a statement, adding the company had “more work to do,” as it restructures to cut costs.
“We must continue to change as our world, our customers, and our competitive landscape evolve,” he said.
The cuts will be made in the coming weeks, with outgoing staff set to be offered “generous packages” and opportunities for consultations.
PayPal is eyeing savings worth US$1.3bn in 2023 though its cost cutting measures, predict Wedbush analysts, and is on course to save up to US$900mln in operating and transaction expenses this year.
It comes as other tech companies make significant reductions in response to the slowing global economy.
Amazon.com Inc and Microsoft Corporation (NASDAQ:MSFT) have already said they will cut 18,000 and 10,000 jobs respectively this year.
The total number of global tech sector layoffs now sits at 78,000 in 2023, after just one month, while 160,000 jobs were cut over the course of last year, according to website layoffs.fyi.
Meta Platforms Inc (NASDAQ:FB), which owns Facebook and Instagram, boss Mark Zuckerberg suggested last year that tech companies had overinvested during the pandemic as demand for online services boomed, but have now been squeezed as user activity declines and costs grow.