PayPal Holdings to lay off its 7% workforce to cut costs

• Paypal Holdings Inc announced that it is preparing to lay off 7% of its workforce.
• The payments company’s stock increased by around 2.4% in afternoon trading.
• PayPal lowered its annual revenue growth projection in November.

The latest in a line of fintech companies to be impacted by the economic slowdown, PayPal Holdings Inc announced on Tuesday that it is preparing to lay off 7% of its workforce, or roughly 2,000 workers.

“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.

In an environment where consumers’ purchasing power is being impacted by decades-high inflation and the possibility of an impending recession, the decision to keep costs under strict control is being made.

The payments company’s stock increased by around 2.4% in afternoon trading.

In anticipation of a wider economic slowdown, PayPal lowered its annual revenue growth projection in November. The company also stated that it did not anticipate significant growth in its US e-commerce sector during the holiday season.

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