PayPal is cutting 2,000 positions as a result of the weakening economy around the world.
As the latest major technology company to implement cost-cutting measures, PayPal has decided to lay off around 2,000 of its employees, which represents 7% of its total workforce.
The organization that facilitates online payments has stated that it was compelled to come to this conclusion due to “the tough macro-economic climate.”
The decision made by PayPal comes in the wake of tens of thousands of job cuts made by technology firms in just the past month alone.
This year, Amazon, Microsoft, and Google’s parent firm, Alphabet, have all revealed plans to shed a significant number of jobs.
Dan Schulman, the chief executive officer of PayPal, was quoted as saying in a statement, “We must continue to change as our world, our customers, and our competitive landscape evolve.”
Also on Tuesday, the parent firm of the popular social media site Snapchat, Snap, issued a warning that revenue for the three months leading up to the end of March might drop by as much as 10%.
Investors were informed by the company that “We anticipate that the operating environment will continue challenging, as we expect the challenges we have faced over the previous year to linger during Q1,” and “We expect that the operating environment will remain challenging.”
Following the publication of the news, extended trading in New York saw a decrease of about 15 percent in Snap’s share price.
Because of “the uncertain economy” and the quick recruiting that took place during the pandemic, Amazon made the announcement at the beginning of this year that it wanted to reduce more than 18,000 jobs.
In the same month, Alphabet announced that it would eliminate 12,000 jobs, and Microsoft revealed that up to 10,000 workers could lose their positions.
The Swedish music streaming behemoth Spotify announced last week that it would lay off 6% of its around 10,000 employees, citing a desire to increase efficiency as the reason for the layoffs.
The United States computer chip manufacturer Advanced Micro Devices (AMD) disclosed on Tuesday a 98% drop in net income for the final three months of 2022, which is another indicator that the technology industry is entering a recession.
Additionally, the company stated that it anticipates a reduction in revenue of up to 10% during the current quarter.
The results, on the other hand, were significantly better than many investors had anticipated, and as a result, AMD’s share price increased after the announcement.
SK Hynix, the world’s second-largest maker of memory chips, announced Wednesday in Asia that its most recent quarterly loss was its worst ever recorded.
The South Korean corporation announced a worse-than-expected loss of 1.7 trillion won ($1.4 billion; 1.1 billion pounds) for the final three months of 2022 as a result of a 38% decrease in revenue.
The company referred to declining pricing for computer chips and joined other competing technology companies in issuing a warning that it anticipates an industry-wide slowdown to get more severe in the coming months, before beginning to improve later in the year.
It comes after Samsung Electronics, a competitor, disclosed on Tuesday the lowest quarterly profit it had seen in the previous eight years.