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FutureStarrWhat #PayPal and 26 Other #Companies Have Said About #Layoffs This #Year
PayPal has announced the layoff of 2,000 employees, or about 7% of its global workforce. These cuts are part of PayPal's ongoing effort to "right-size" its cost structure and focus on core business initiatives.
The company also announced it would provide severance to affected employees, expedite equity vesting and provide recruiting assistance.
This year has seen several large tech companies announce job cuts due to a need to cut expenses in an uncertain economic climate.
PayPal, a major payments firm, recently announced it plans to make 2,000 layoffs. This reduction represents around 7% of their workforce and is part of PayPal's larger restructure plan across global operations.
Amazon, another major tech firm, also announced massive layoffs in January. In a letter to staff, Amazon CEO Andy Jassy acknowledged the company was "under pressure to align operations to reduced marketplace revenue" after seven rounds of interest rate increases last year and amid continuing worries over an economic downturn.
Recently, Getir, a Turkish delivery business, has experienced an uptick in layoffs of about 14% across its global team. Although this industry remains highly competitive, slow economic growth hasn't helped matters much either.
Layoffs can often be a cost-saving measure for companies, but for those affected by them it can be an incredibly painful experience.
This year has seen the largest wave of layoffs in tech, with several major companies cutting their workforces. Amazon, Salesforce and Microsoft are just three among many who have announced significant reductions this month.
This is the largest surge of layoffs since Forbes began tracking these events last summer. It's a response to growing anxieties about the economy.
Companies often begin with voluntary buyouts and then focus on departments that are too large, have too much wiggle room or are underperforming in business ventures, according to Jason Winmill of Argopoint consulting firm. After that, it all comes down to performance, Winmill concludes.
Microsoft-owned GitHub, with 100 million members worldwide, recently announced it would be cutting 10% of its workforce. Furthermore, the company plans to close their offices as leases expire and transition towards a remote-first work culture.
Recently, tens of thousands of workers at tech firms have lost their jobs. Now those companies are scrambling to restructure their staffs as the economy slows and competition increases.
PayPal is also planning to cut 2,000 employees, or approximately 7% of its global workforce. CEO Dan Schulman noted that these job cuts are being made due to an economic downturn.
Bloomberg reported that the cutbacks are part of a long-term restructuring plan and will save the company $260 million annually. Furthermore, according to Bloomberg, they spent $20 million to assist employees affected by layoffs.
Due to weak demand and rising interest rates, thousands of employees in the nascent financial-technology industry are losing their jobs. LendingClub, a "buy now, pay later" lender, and online platform Upstart have both cut staff by 10% or more - joining other fintechs such as Affirm, Chime and Stripe who have also cut back.
Lending Club differs from traditional banks by not holding its own pool of capital to loan to borrowers; instead, it relies on investors for funding. Unfortunately, this has left the company vulnerable when investors pull back, making growth difficult.
To stay afloat, the firm has tightened credit standards, reduced staff levels and altered its business model. Now it stores some loans on its balance sheet instead of selling them to investors as interest rates rise and capital costs increase.
Twilio, a San Francisco-based maker of customer communication and marketing software, has announced plans to reduce its workforce by 17%. Additionally, it will reduce some office space and eliminate employee benefits as it strives to focus on profitability.
Twilio CEO Jeff Lawson wrote a blog post explaining why they made these cuts: "Growing too quickly." This isn't the first time Twilio has let go employees for similar reasons in the past.
Lawson announced the formation of a new leadership team to ensure the company follows an Anti-Racist philosophy when making decisions about who to let go. Furthermore, Lawson wants employees to feel like they're part of something larger than themselves--an organization striving to make the world a better place.
Due to a decline in funding, several startups have had to reduce staff numbers. Edtech unicorn Unacademy cut around 600 jobs, while India-based fintech firm Clear also had to let go of 200 employees.
DoorDash, the US food delivery app, has announced the loss of approximately 1200 employees - or 30% of its workforce. The company cited excess hiring during the COVID-19 pandemic last year as one reason for these cuts.
Lundbeck is also cutting back its staff numbers as it refines its Vyepti infusion product to fuel growth in the drug. According to their WARN alert, they plan on reducing their West Coast workforce by around 360 employees.
Redfin, too, has announced the reduction of 8% of its workforce as it looks to cut costs in an ever-tightening housing market.
Salesforce is a customer relationship management (CRM) software platform designed to help businesses increase revenues and eliminate inefficiencies. Its products are scalable, user-friendly, and accessible across devices.
The cloud platform also boasts an expansive ecosystem of partner applications that give customers access to various data sets. This fosters closer connections between companies and their customers.
Salesforce may experience some sales decline due to the recent layoffs, but this is unlikely to have an adverse effect on their 150,000 global customers or 80,000 strong workforce.
Marc Benioff, CEO of Salesforce, issued a letter to employees outlining their company's approach to layoffs and offered support for those affected by them. He noted that employees would receive at least five months' pay, health insurance coverage and career resources in the event of job loss.
The tech sector is experiencing a wave of layoffs, as companies that powered the 10-year bull market adjust to slowing growth rates, higher interest rates and worries about an impending recession. Google announced plans to let go 12,000 staffers this month while Microsoft is planning to reduce another 10,000 positions.
GoMechanic, an automobile repair startup, has abruptly laid off 70 per cent of its staff due to alleged accounting errors. Co-founder Amit Bhasin acknowledged on Wednesday through a LinkedIn post that GoMechanic had made "grave mistakes in judgment" by pursuing growth at all costs.
He further confirmed that the company will undergo a third-party audit of its accounts.
GoMechanic had previously been in talks with SoftBank and other investors to raise $75-80 million in a funding round at an estimated valuation of over $1 billion, but the deal was called off due to accounting irregularities. According to Moneycontrol's source, GoMechanic had reported false numbers and used fictitious garages during due diligence exercises.
PayPal is one of the world's leading e-commerce companies, supporting 179 million merchants and consumers across 200 international markets. Formerly part of eBay's corporate family, PayPal became an independent entity in 2015. The Company strives to offer innovative solutions that empower people and businesses around the globe.
Most former PayPal employees move into firms in the internet industry, such as Google or Linkedin. However, it's important to note that there are other industries and job types where former PayPal employees may move, including Information Technology & Services or Computer Software. Modern employees - particularly millennials - are always on the lookout for new challenges and opportunities. It is essential to stay abreast of changes within your industry to maximize impact. Kandidate's members-only network can help you confidentially discover the next step in your career journey.