PayPal Lay-Off: As the latest major IT company to cut costs, PayPal is eliminating almost 2,000 jobs, or 7% of its workforce.
The online payments provider claims that because of “the tough macro-economic climate,” it was compelled to make the choice.
Following tens of thousands of layoffs by industry titans in only the past month, PayPal made its announcement.
Google’s parent company Alphabet, Amazon, and Microsoft all announced significant job layoffs this year.
“We must continue to change as our world, our customers, and our competitive landscape evolve,” Dan Schulman, the chief executive of PayPal, stated in a statement.
The parent firm of social media network Snapchat, Snap, issued a similar warning on Tuesday, estimating a 10% drop in revenue for the three months ending in March.
“We anticipate that the operating environment will remain challenging, as we expect the headwinds we have faced over the past year to persist throughout Q1,” the company told investors.
Snap’s shares plummeted by about 15% in extended trading in New York following the announcement.
Amazon said at the beginning of this year that it will be laying off more than 18,000 employees due to “the uncertain economy” and a spike in hiring during the pandemic.
Earlier this month, Microsoft and Alphabet both announced job losses of up to 10,000 and 12,000 respectively.
The massive Swedish music streaming company Spotify said this week that it would let off 6% of its around 10,000 workers, citing the need to increase productivity.
Advanced Micro Devices (AMD), a US computer chip manufacturer, on Tuesday reported a 98% decline in net income for the final three months of 2022. This is another indication of the recession in the technology sector.
The business also stated that it anticipates a 10% decrease in revenue for the current quarter.
The numbers, however, were better than many investors had anticipated, and AMD’s shares increased following the report.
The second-largest memory chip manufacturer in the world, SK Hynix, reported its greatest quarterly loss in Asia on Wednesday.
The South Korean business revealed a worse-than-anticipated 1.7 trillion won ($1.4 billion; £1.1 billion) loss for the final three months of 2022 due to a 38% decline in sales.
The company cited declining computer chip prices and joined other competing technology behemoths in issuing a warning that it anticipates an industry-wide slowdown to worse in the months ahead before improving later in the year.
It happened following the release on Tuesday of the lowest quarterly earnings by rival Samsung Electronics in eight years.