PayPal To Cut 2,000 Jobs As It Reduces Costs

PayPal (PYPL) has announced that it will cut 2,000 jobs as it tries to reduce costs in a slowing macroeconomic environment.

The online payments giant said that it will reduce its global headcount by about 7% in the coming weeks.

The job cuts come as PayPal reduces expenses, which also includes shutting down several offices across the U.S.

The cuts should lead to more than $2 billion U.S. in savings, according to the company.

PayPal’s workforce swelled during the pandemic when COVID-19 forced governments to issue lockdown orders, driving consumers to shop online.

Now, as the global economy reopens, consumers have returned to in-store shopping, which has hurt PayPal’s business.

PayPal’s stock rose 1.9% on news of the job cuts and office closures. The stock is down 54% over the last 12 months and trading at $81.49 U.S. per share.