The technology industry continues to go through difficult times, as can be seen by PayPal’s new decision. The company will carry out 2,500 layoffs after announcing drastic cuts, which means that 9% of the entire workforce will stop working for the company. With this, there have already been countless announcements of layoffs by major technology companies.
PayPal, a well-known application for many years for being a highly secure payment tool and associated with a multitude of digital commerce, will thus adopt a new, more austere strategy, seeking to “optimize” existing resources with 2,500 fewer employees on the payroll.
9% of PayPal’s workforce laid off
Just as Bloomberg has recently announced, PayPal is joining the companies that are cutting employees in 2024 by laying off a total of 2,500 workers, a harsh measure that affects 9% of the company’s employees. This means that Alex Chriss, its CEO appointed in September 2023, has a clear path for cost-cutting for the company in 2024.
Chriss justifies these cuts as a necessary measure to adjust the size of the company after having had downward trends in recent quarters. Additionally, he also points out that it is easier for them to make decisions with a less complex corporate structure.
The employment crisis in the technology industry
The current trend in the technology industry regarding layoffs is quite striking, as there hasn’t been any specific event that can be directly related to this wave of layoffs in the industry as a whole. However, in 2023 there were already tens of thousands of layoffs in a supposedly growing segment, and this 2024 seems to be heading in a similar direction, considering the trend among large companies and the number of layoffs announced in January alone.
And it is that, as can be seen, companies are determined to continue destroying jobs in an industry that, for decades, has not stopped growing. In fact, the volume of layoffs that have been carried out since 2023 increasingly leaves a panorama more similar to the dot-com crises at the beginning of this century than to a scenario of prosperity and growth.
