PayPal to cut 2,000 jobs to reduce expenditure; Has tech reached breaking point?
An American payment company, PayPal, has announced intent to cut down about 7% of its workforce to meet its current realities.
According to the company, the need for the trimming is in response to “the challenging macro-economic environment.”
PayPal will make the cuts over several weeks, with some of its organisations affected more than others, a statement from the company revealed.
Although, the company did not further specify, Ripples Nigeria, however, understands that PayPal is the parent of Venmo, Xoom, and Honey, among other brands.
The development makes the California-based company the latest in the technology sector to trim its headcount.
Ripples Nigeria had reported similar workforce cut down with other top tech companies including Google, Amazon, Twitter, Microsoft, and Salesforce.
READ ALSO:Paypal cofounder, Peter Thiel, leads $6m seed in Nigerian startup, Maplerad. 2 other stories and a trivia
Speaking on the challenge, PayPal President and CEO, Dan Schulman, explained how the company had battled with the challenges in the space.
“Over the past year, we made significant progress in strengthening and reshaping our company to address the challenging macro-economic environment while continuing to invest to meet our customers’ needs,” Dan Schulman said.
“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.”
More than ever before, the repeated pattern of layoff with most tech companies is becoming a concern for tech leaders and advocates with many asking whether tech has reached its breaking point.
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