PayPal lays off workers to reduce costs

According to Bloomberg, PayPal laid off its risk and operations staff this week. This is the latest in a series of layoffs at the company - and it's unlikely to be the last. The company has also reportedly recently cut its headcount in Chicago, Omaha, Nebraska, and Chandler, Arizona. In addition, the intention to lay off 80 people working at the headquarters of PayPal in San Jose, California was previously mentioned.

The company has approved plans for a strategic staff reduction in 2020. However, the new layoffs came after PayPal showed signs of slowing growth. In the first quarter of the year, transfers within the platform grew by 15% to $323 billion. This was the smallest increase in the last 5 years. The reason for this could be the shortage of some goods due to the global supply chain crisis, as well as the fact that people returned to shopping in stores after the easing of quarantine restrictions.

PayPal has spent $100 million on severance pay and other costs related to job cuts, and expects to spend even more. However, in the long run, the restructuring will save the company $260 million a year.

Source: www.engadget.com