Tech layoffs: PayPal cuts 2,000 jobs as global economy weakens

Husam1 فبراير 2023آخر تحديث :
Tech layoffs: PayPal cuts 2,000 jobs as global economy weakens

PayPal is shedding around 2,000 jobs, or 7% of its workers, as it becomes the latest big tech firm to cut costs

The online payments company says it was forced to make the decision as it faces “the challenging macro-economic environment

PayPal’s announcement follows tens of thousands of layoffs by technology giants in the last month alone

This year, Google’s parent company Alphabet, Amazon and Microsoft have announced major job cut

“We must continue to change as our world, our customers, and our competitive landscape evolve,” PayPal’s chief executive Dan Schulman said in a statement

Also on Tuesday, Snap – the parent company of social media platform Snapchat – warned that revenue for the three months to the end of March could fall by as much as 10%

“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

After the announcement Snap’s shares fell by almost 15% in extended trade in New York

At the start of this year, Amazon announced it planned to cut more than 18,000 jobs because of “the uncertain economy” and rapid hiring during the pandemic

Also this month, Alphabet said it would shed 12,000 jobs, while Microsoft said up to 10,000 employees would lose their jobs

Last week, Swedish music-streaming giant Spotify said it would cut 6% of its about 10,000 employees, citing a need to improve efficiency

In another sign of the technology industry slowdown US computer chip maker Advanced Micro Devices (AMD) on Tuesday reported a 98% fall in net income for the last three months of 2022

The company also said it expects revenue to drop by as much 10% in the current quarter

However, the figures were better than many investors had expected and AMD’s shares rose after the announcement

In Asia on Wednesday, the world’s second-biggest memory chip maker SK Hynix posted its largest quarterly loss on record

The South Korean company reported a worse-than-expected 1.7tn won ($1.4bn; £1.1bn) loss for the last three months of 2022, as sales fell by 38%

The firm pointed to falling computer chip prices and joined rival technology giants as it warned that it expects an industry-wide downturn to worsen in the coming months, before recovering later in the year

It came after rival Samsung Electronics on Tuesday reported its lowest quarterly profit in eight years

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