PayPal undergoes significant layoffs with 2,500 job cuts amidst intensifying competition

PayPal has announced plans to cut 2,500 jobs, which accounts for around 9% of its global workforce, following a similar move made a year ago. CEO Alex Chriss stated that the decision was made to "right-size" the company by reducing both direct positions and open roles. The affected employees will be informed by the end of the week. Increasing competition from Apple, Zelle, and Block has put pressure on PayPal. Chriss, who was brought in from software company Intuit to oversee PayPal's turnaround, aims to revive the firm's declining share price, which has dropped by over 20% in the past year. In November, PayPal reported better-than-expected earnings under its new CEO, providing some optimism for its recovery. The company recently unveiled AI-driven products and a one-click checkout feature. Amidst a wave of layoffs in the technology sector, with over 260,000 job losses recorded last year, PayPal's latest cuts add to the growing number of layoffs by industry giants. Over the past month, nearly 100 tech firms, including Meta, Amazon, Microsoft, Google, TikTok, and Salesforce, have collectively announced 25,000 job cuts. In line with its plan to reduce its workforce by 1,000 by year-end, Block, led by Twitter co-founder Jack Dorsey, has now started implementing job cuts. Executives previously attributed job losses to the pandemic-induced hiring spree and high inflation, leading to weakened consumer demand. Some technology industry workers are pushing back against the trend, with a union representing Google workers criticizing the company's job cuts, stating that it generates billions of dollars annually.