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Paypal cuts seven percent of its jobs


The next stone falls in the job cuts domino of the US Internet industry: PayPal. After a blatant drop in value last year, a four-digit number of employees have to go.

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PayPal headquarters in San Jose

Photo: Jeff Chiu/AP

In view of the difficult economic environment, the online payment service PayPal wants to get rid of around seven percent of its employees – around 2,000 employees.

This was announced by the company based in San Jose.

CEO Dan Schulman justifies the job cuts as austerity measures.

PayPal has made great strides in reducing costs over the past few years, but still needs to do more.

like Schulman.

A number of companies in the tech industry – including the Facebook parent company Meta, Amazon, Twitter, Salesforce and the Google group Alphabet – have decided to lay off large numbers of tens of thousands of employees in the past few weeks and months.

PayPal said it would make the cuts over a period of weeks, with some parts of its business being hit harder than others, but the company has yet to provide any specifics.

PayPal is also the parent company of payment processors Venmo and Xoom, as well as Honey, a provider of coupon codes.

Last summer, activist investor Elliott Management bought a roughly $2 billion stake in PayPal, which it says has an "information-sharing agreement" with Elliott.

PayPal Holdings Inc. will report its quarterly results on February 9th.

Stock market value halved within a year

The company's shares have fallen about 53 percent over the past year.

Following Tuesday's announcement, they were up 2.3 percent and at $81.49.

During January Microsoft announced 10,000 job cuts, Amazon 18,000 and Meta 11,000.

Finally, the Google mother Alphabet announced that it would cut 12,000 jobs.

During the corona pandemic, the tech companies had increased their number of employees in some cases significantly in view of the booming business.

Recently, however, business development has slowed down, among other things due to economic concerns and high inflation.


Source: spiegel

All business articles on 2023-02-01

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