PayPal Holdings said on Tuesday (Jan 31) it is planning to cut 7 per cent of its workforce, or about 2,000 employees, the latest in a string of fintech firms to be hit by the economic slowdown.
“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,” said PayPal’s Chief Executive Dan Schulman in a statement.
The move to keep a tight lid on costs comes against the backdrop of decades-high inflation hitting the purchasing power of consumers who also have to contend with the threat of a looming recession.
Shares of the payments firm were up about 2.4 per cent in afternoon trading.
In November, PayPal had cut its annual revenue growth forecast in anticipation of a broader economic downturn and said it did not expect much growth in its US e-commerce business in the holiday quarter.
