Alex Chriss, CEO of the online payment platform, PayPal, has informed staff in an internal memo about the company's proposition to lay off 9 percent of its workforce. This is approximately 2,500 jobs and is seen as a strategic step towards propelling the company into the domain of AI technology.
In his communication, Chriss suggested that the layoffs would not only impact existing jobs but also new positions that the company had intended to fill in the coming year. He added that those affected by this decision would be notified by the end of the week.
Chriss explained the company's motivations by stating their need to "drive more focus and efficiency, deploy automation, and consolidate our technology to reduce complexity and duplication".
Only the previous week, PayPal had infused artificial intelligence features into its platform. This included a faster checkout experience, AI-powered merchant recommendations for customers, and a consumer app overhaul. Labeling these additions as the "next chapter" for PayPal, Chriss suggested this signals a new era for the company.
This development is not a first for the San Jose-based company. The prior year had witnessed PayPal cutting 2,000 roles. Indeed, according to the data collected by Layoffs.fyi, up to this point in 2024, 98 tech companies have laid off in excess of 25,000 employees. This trend reflects a larger wave sweeping the sector, as last year saw more than 1,100 companies cut 262,595 roles.
