PayPal will reduce its workforce by 9 percent this year through layoffs and through the elimination of open roles. (CNBC estimated that is about 2,500 jobs.) PayPal CEO Alex Chriss, who replaced Dan Schulman in September, communicated the news to employees in a letter on Tuesday, though the company said it would inform those individuals impacted through the end of the week.
After the Information broke the news, PayPal directed us to a post on the PayPal blog where it shared the CEO’s letter to employees, where Chriss said PayPal was reducing its workforce “to right-size” its business.
Chriss said the reduction would allow PayPal to move with the speed needed to deliver for customers and drive profitable growth. At the same time, he said, “we will continue to invest in areas of the business we believe will create and accelerate growth.” He had announced PayPal priorities for 2024 in a presentation on Thursday.
PayPal isn’t alone in announcing major layoffs. eBay laid off 1,000 employees on January 24th – 9% of its workforce; and UPS announced on Tuesday it would cut 12,000 jobs this year – less than 3% of its workforce. Etsy laid off 225 employees last month, including its Chief Marketing Officer and its Chief Human Resources Officer. Amazon has also laid off staff in certain areas this year, and Walmart closed its it innovation lab Store No. 8, resulting in 62 lost jobs in Washington state.
Chriss ended his letter to employees by writing, “I am confident that our PayPal community will come through this period even stronger, and I am optimistic about the future we will create together.”
