Layoffs continue in Silicon Valley due to the difficult economic situation. The latest company in chronological order to announce the cuts is PayPal, which with a post published on its blog has explained that it will lay off 7% of staff.
President and CEO Dan Schulman in the statement has announced the layoff of 2000 employees, a decision made to address the “difficult macroeconomic environmentand to keep costs down. PayPal is in fact downsizing and reducing costs, but there is still a lot of work to do and for this reason it has been necessary to cut staff.
“Changes could be difficult, particularly when it involves valued colleagues and friends leaving”, continues the CEO speaking of the layoffs. Interestingly, PayPal beat earnings and revenue expectations in the last quarter, but the fact that the cuts were announced shortly before the announcement of Q4 2022 quarterly results, which will be revealed on February 9, 2023, suggests that the closing the year was far from easy. The Company shares are down 2% after the announcement of the layoffs.
A few weeks ago Microsoft announced layoffs for 10,000 employees, but in general all Silicon Valley companies are making similar decisions to contain costs.