PayPal Holdings Inc announced on Tuesday that it plans to lay off 7% of its workforce, or around 2,000 people, becoming the latest fintech company to be impacted by the economic recession.
The payments company also joins big cech and Wall Street heavyweights in implementing layoffs across corporate America as corporations attempt to slash expenses to weather the slump.
PayPal’s decision to keep prices low comes against a backdrop of decades-high inflation, which is reducing consumers’ purchasing power while also raising the prospect of a recession.
“While we have made substantial progress in right-sizing our cost structure, and focused our resources on our core strategic priorities, we have more work to do,” PayPal CEO Dan Schulman said in a statement.
In afternoon trade, shares of the payments business, which lost almost 60% of their value last year, were up around 2%.
PayPal lowered its annual revenue growth prediction in November in anticipation of a broader economic slump and stated that it did not expect substantial growth in its e-commerce business during the Christmas period.
