PayPal to lay off 2,000 employees in another round of cost cuts, stock rises over 3%
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PayPal (NASDAQ:PYPL) will lay off ~2K employees, or ~7% of its global workforce, as the payment giant continues to cut costs to counter the challenging macroeconomic environment. The news sent the stock 3.5% higher.
"While we have made substantial progress in right-sizing our cost structure, and focused our resources on our core strategic priorities, we have more work to do," CEO Dan Schulman said in a message shared with employees on Tuesday.
"These reductions will occur over the coming weeks, with some organizations impacted more than others," he said.
PayPal (PYPL) will continue to hire "strategically" this year, spokeswoman Amanda Miller reportedly said. 
Last month, Schulman indicated that PayPal (PYPL) could deliver Q4 earnings "slightly ahead" of its outlook. At the time, he'd guided for negative growth in operating expenses in Q4 to reflect "a more difficult economic environment".
Wall Street has been plagued with back-to-back layoffs as macro headwinds force companies to tighten their purse strings. SA author J.G. Collins said tech layoffs ahead of earnings point to a slowing economy.
Just today, AI lending platform Upstart (UPST) said it will cut over 300 jobs and suspend its small-business loan product.
Truist recently upgraded PayPal (PYPL) to Buy as the Street's estimates are reasonable and it sees potential for new leadership at the firm this year.