PayPal Layoffs Continue As Pressure To Cut Costs Mounts
UPDATE 11-8-22
PayPal is undergoing another round of layoffs, this time cutting 59 jobs at its San Jose headquarters, according to the Silicon Valley Business Journal.
PayPal Holdings Inc. is cutting 59 jobs at its San Jose headquarters.
The company began alerting those affected by the cuts Sept. 20, it told the state Employment Development Department in an emailed letter last week. It plans to complete the notifications by Nov. 19, and the effective date of the individual layoffs is at least 60 days after notification, according to the digital payments company.
"PayPal is undertaking restructuring activity that will result in employee exits," the company said in its letter.
83 employees at PayPal headquarters in San Jose were laid off earlier this month and now dozens more in risk management and operations in Illinois, Nebraska and Arizona have been cut loose as well, according to a report from Bloomberg.
PayPal Holdings Inc. began laying off staffers who worked in risk management and operations this week as the firm seeks to shore up profits after growth in spending on its platform stagnated in recent quarters.
The company laid off dozens of staffers who worked in Chicago, Omaha, Nebraska and Chandler, Arizona, according to people familiar with the matter, who asked not to be identified discussing private information...
...The company said last month it was working to improve operating leverage -- or the ability to grow revenue faster than expenses. Chief Executive Officer Dan Schulman said the company had started to simplify its operating model before the pandemic, but the explosion in volumes on its platform in the early days of the outbreak forced the company to put that work on hold.
“We are now coming back to this work with renewed focus, energy and purpose,” Schulman vowed at that time.
They are also proposing cutting 307 jobs from Irish operations in Dundalk and West Dublin.
Jamie McCarron
As Shulman focuses on improving operating leverage, I'm sure more than a few of the laid off employees have some questions and thoughts about the $32 Million compensation package he received in 2021.
Liz Kiesche
PayPal hasn't officially given a total number for this most recent round of layoffs that I've seen, but anonymous posts on TheLayoff paint a grim picture, if true - possibly over 1,000.
Anonymous
One comment in particular highlighted some of the risks involved in downsizing those specific departments:
I see multiple regulatory fines in their future
looking to save money? gut your entire risk department!Oops, looks like you failed to meet AML/CTF standards, enjoy your several years in a row of fines and audit failures!
I'll update this story as more information becomes available. If you're a PayPal employee who has been impacted by these lay offs, I'd love to speak to you on or off the record, requests for confidentiality will absolutely be respected.
