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 hundreds of thousands of layoffs by industry titans in only the past month, PayPal made its announcement.
Google’s parent companies, Alphabet, Amazon, and Microsoft all announced significant job cuts this year.
Dan Schulman, the CEO of PayPal, stated in a statement, “We must adjust as our environment, our customers, and our competitor analysis evolve.”
Additionally, on Tuesday, the parent company of the social media network Snapchat, Snap, issued a warning that the income for the three months ending in March could decrease by as much as 10%.
The business informed investors that it expected the operational environment to remain difficult and that the challenges it has experienced in recent months will continue into Q1.
In prolonged trading in New York after the announcement, Snap’s shares dropped by about 15%.
Due to “the unstable market” and its hasty recruiting during the epidemic, Amazon said at the beginning of this year that it would be eliminating more than 18,000 employees.
This month, Microsoft announced that up to 10,000 people would lose their jobs, and Alphabet announced that it would cut 12,000 jobs.
Last Monday, Swedish music streaming company Spotify announced it would let go of 6% of its 10,000 staff members, citing the need to increase productivity.
Another indicator of the recession in the technology sector was revealed on Tuesday by US computer chip manufacturer Advanced Micro Devices (AMD), which revealed a 98% decline in net profits for the final three months of 2022.
Additionally, the business predicted a 10% decrease in revenue for the current quarter.
AMD’s shares increased following the announcement since the numbers were better than many investors had anticipated.
For the final three months of 2022, the South Korean corporation announced a worse-than-anticipated 1.7 trillion won loss due to a 38% decline in revenue.
The company cited declining microchip prices and joined other competing tech behemoths in issuing a warning that an industry-wide downturn is likely to get worse in the coming months before improving later in the year.
After Samsung Electronics, a competitor company, posted its lowest quarterly profit in eight years on Tuesday, it followed suit.