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PayPal To Lay Off About 7% Of Its Workforce; Nearly 2,000 Employees Will Be Dismissed, This Measure Was Taken To Cut Costs, Says Fintech

Written by Bruno Teles
Published on 02/02/2023 at 11:59
PayPal vai demitir cerca de 7%
PayPal vai demitir cerca de 7% (foto/divulgação)
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The Company PayPal Holdings Announced On Tuesday Afternoon (31) That It Will Cut About 7% Of Its Employees; Nearly 2 Thousand Workers Are Joining The Group Of Digital Payment Companies That Have Been Affected By The Slowdown Of The Economy.

“Although We Have Made Substantial Progress In Right-Sizing Our Cost Structure And Focusing Resources On Our Core Strategic Priorities, We Still Have More Work To Do,” Said Dan Schulman, CEO Of PayPal In A Statement.

In November Last Year, PayPal Also Reduced Its Annual Revenue Growth Forecast Due To The Anticipation Of The Economic Slowdown And Also Stated That It Did Not Expect Much From E-Commerce In The United States In The Last Quarter Of 2022.

‘Big Techs’ 

The Group Named “Big Techs”, Which Includes Apple, Microsoft, Amazon, Meta (Owner Of Whatsapp, Facebook, And Instagram), And Alphabet (Google) Has Already Laid Off About 40 Thousand People In This First Month Of 2023.

These Layoffs In January Occurred In Three Of The Companies In This Group: 

Amazon (About 18 Thousand Employees) 

Microsoft (10 Thousand Employees) 

Google (12 Thousand Employees) 

PayPal Announces Layoff Of 2 Thousand Employees 

YouTube video
VIA CNN BUSINESS

When Considering The Entire Technology Sector, January Recorded Nearly 100 Thousand Layoffs. This Is The Estimate Provided By The Platform TrueUp, Specialized In Jobs In The Area.

What Is The Reason? 

The Macroeconomic Slowdown And The Drop In Advertising Revenue Explain The Entire Negative Scenario. To Make It Easier To Understand This Situation, It Is Necessary To Consider The Consistent Increases In Interest Rates In Recent Months In The United States, To Curb Inflation.

In Addition To The Impact On Sales, The Scenario Has Also Caused Companies To Cut Advertising Spending, Which Is Hitting All The Tech Giants That Rely On Ads.

Not To Mention That The Covid-19 Pandemic Gave Many Hopes To The Sector With So Many People Online And A Boom In The Electronics Sector. With All This Perspective, These Companies Made Mass Hires, Which Later Proved To Be Not Entirely Sustainable.

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Bruno Teles

I cover technology, innovation, oil and gas, and provide daily updates on opportunities in the Brazilian market. I have published over 7,000 articles on the websites CPG, Naval Porto Estaleiro, Mineração Brasil, and Obras Construção Civil. For topic suggestions, please contact me at brunotelesredator@gmail.com.

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