This figure constitutes about seven per cent of its workforce, and CEO Dan Schulman has assured those fired they will get generous packages and support.

He said that over the past year, Paypal made significant progress in strengthening and reshaping our company to address the challenging macroeconomic environment while continuing to invest to meet our customers’ needs.
While Schulman scores points by not mentioning the term “economic headwinds”, the reasons for the mass redundancies are a little unclear.

“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. We must continue to change as our world, customers, and competitive landscape evolve,” he said.

Bloomberg translated the quote as meaning that Paypal was laying off employees and shuttering physical offices in a bid to lower operating expenses.

Schulman has been very vocal about operating expenses. Like most tech companies, PayPal saw increased economic growth during the pandemic leading as people started shopping online more frequently, using PayPal as their payment platform. Now that shopping patterns are returning to normalcy, the firm is reducing its headcount in response.