PayPal to lay off 2,000 employees
- Dan Primack, author of Axios Pro Rata
PayPal president and CEO Dan Schulman. Photo by Derek White/Getty Images for Operation HOPE.
PayPal CEO Dan Schulman announced on Tuesday that the company will lay off around 2,000 employees, the latest tech giant to slash jobs this year.
The big picture: This would come on top of the 68,000 tech workers who already have lost their jobs so far in 2023, according to tracking site Layoffs.fyi.
- The PayPal move will impact around 7% of its global workforce, with specific reductions to be disclosed in the "coming weeks."
- Schulman said in a message to employees that laid-off employees will receive "generous packages," but did not get more specific.
Elsewhere: Earlier Tuesday, business software firm WorkDay disclosed plans to cut 525 employees, or 3% of its headcount.
Investors cautiously cheered the news with a slight bump to PayPal's stock price, which is up in 2023 but down more than 50% over the past 12 months.
- The company is set to report quarterly earnings on Feb. 9.
The bottom line: Silicon Valley overhired coming out of the recession, without anticipating possible economic softening.
- Now it's reversing course, with a vengeance.
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