PayPal planning to lay off 7% of its personnel
Technology
PayPal is striving to position financially and strategically, bracing for economic slowdown
(Reuters) - The latest fintech company to be impacted by the economic slowdown PayPal announced on Tuesday that it was planning to lay off seven percent of its personnel or roughly 2,000 workers.
The payments company also joins Wall Street heavyweights and Big Tech corporations that are conducting layoffs throughout corporate America as businesses try to control expenses to weather the slump.
PayPal s decision to keep prices under strict control comes as consumers purchasing power is being impacted by decades-high inflation while also facing the prospect of an impending recession.
Shares of the payments company were up around two percent in midday trade after losing roughly 60 percent of their value the previous year.
"Similar to other Internet businesses PayPal is striving to position itself financially and strategically, bracing for economic slowdown," according to Moshe Katri, an analyst at Wedbush.
In anticipation of a wider economic slowdown PayPal lowered its annual revenue growth projection in November. The company also stated that it did not anticipate significant growth in its US e-commerce sector during the Christmas season.
Executives at company said at time that a challenging macro environment and slowing e-commerce trends were pushing it to be prudent with its forecast.
