Rising Competition: PayPal To Lay Off 2500 Employees

PayPal faces rising competition from rivals such as Apple, Zelle, and Block.

Rising Competition: PayPal To Lay Off 2500 Employees

PayPal plans to slash another 2,500 positions, or 9% of its worldwide staff, a year after making a similar move.

CEO Alex Chriss informed employees that the decision was taken to "right-size" the organization "through both direct reductions and the elimination of open roles."

The impacted employees will be notified by the end of the week, according to the digital payment giant.

PayPal is seeing more competition from companies like Apple, Zelle, and Block.

Chriss was hired by software giant Intuit last year to help turn around PayPal.

Investors anticipated he would be able to resuscitate the company's share price, which has dropped by more than 20% in the last year.

In November, PayPal published its first profits under its new CEO, which exceeded experts' estimates, giving investors confidence that its comeback had started.

Last week, the company introduced new artificial intelligence-powered items and a one-click checkout function.

The latest job losses come after tens of thousands of layoffs by other huge technology companies in recent months.

Last year, the sector shed more than 260,000 jobs, according to the Layoffs.fyi website, which monitors job layoffs in the IT industry.

In the past month, around 100 IT companies, including Meta, Amazon, Microsoft, Google, TikTok, and Salesforce, have disclosed a total of 25,000 job cutbacks.

Block, run by Twitter co-founder Jack Dorsey, began job cuts this week as part of a plan to reduce its headcount by 1,000 by the end of the year.

Last year, CEOs blamed job losses on a pandemic hiring binge and rising inflation, which led to low consumer demand.

However, some IT professionals are pushing back. Earlier this month, a union representing Google employees claimed it was "needless" for the internet giant to lose hundreds of positions when it earns billions of dollars every year.

This article was originally published on the BBC.