Dan Schulman, PayPal’s president and CEO, made a corporate announcement to his staff that he will lay off 2,000 people, about 7% of the company’s workforce.
PayPal, the online payment company, has just joined a long list of companies in the United States that are cutting staff due to the difficult economic outlook they are facing at the beginning of the year.
Schulman wrote that last year the company made progress, but today the reality requires other measures to move forward.
“Over the past year, we have made significant progress in strengthening and reshaping our business to address the challenging macroeconomic environment while continuing to invest to meet the needs of our clients. While we have made substantial progress on sizing our cost structure right and focusing our resources on our core strategic priorities, we have more work to do,” Schulman said.
The manager emphasized that PayPal must continue to change as the world, customers and competitive landscape do.
Then came the difficult news: “Addressing these changes requires us to make difficult decisions that will affect some of our colleagues. Today, I am writing to share the difficult news that we will be reducing our global workforce by approximately 2,000 full-time employees, which represents approximately 7% of our total workforce.”
Schulman explained that the reductions will occur in the coming weeks, with some organizations being more affected than others, without elaborating.
“We will treat our departing colleagues with the utmost respect and empathy, provide them with generous packages, engage in consultations where necessary, and support them with their transitions. I want to express my personal appreciation for the significant contributions they have made to PayPal,” Schulman wrote.
PayPal said that over the coming days and weeks, leaders will share the specific impacts within their business units and teams in an open and transparent manner.
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