Job Layoff News: Retrenchment continues, now this big company will lay off 2,500 employees
The process of layoffs seen on a large scale last year does not seem to be stopping even in the new year. Many big technology companies, including Google, Microsoft and eBay, have laid off many employees and are still considering reducing the workforce. Continuing this trend, PayPal, a big player in the payments sector, has announced the layoff of 2,500 employees, which is 9% of its global employees.
According to the company’s CEO Alex Chris, the purpose of this decision is to increase focus and expand the business to size. Employees affected by this retrenchment are expected to get information by the end of the week. These layoffs will affect both existing employees and positions that the tech giant had initially planned to fill.
Retrenchment announced in company memo
Announcing the layoffs in an internal company memo, Chris said that the company is going to reduce its global staff by about 9 percent. He added, “We are doing this to right-size our business so we can grow at the pace our customers need and deliver profitable growth. We will also continue to invest in areas of the business that are most important to us.” We believe that this will lead to development and it will accelerate.”
Earlier, PayPal had said that it is doubling down on artificial intelligence by enabling faster checkout, AI-powered merchant recommendations and more. CEO Alex Chris called it the “next chapter” in PayPal’s journey. Apart from this, in the year 2022, PayPal had to go through the same phase of layoffs, due to which 2,000 employees globally had to lose their jobs.
What is the condition of other tech firms?
Last year, Google laid off more than 12,000 employees and this year too the tech giant is considering laying off more than 1,000 people. Meanwhile, Salesforce laid off about 700 employees, or about 1% of its global workforce.
Microsoft has laid off about 1,900 employees at Activision Blizzard and Xbox. eBay has also cut about 1,000 jobs, or 9% of its workforce, due to expenses rising faster than businesses can handle. Additionally, SAP recently announced a restructuring program that will affect approximately 8,000 positions.
