Global payments company PayPal is laying off 2,000 employees, about 7 per cent of its workforce, as the technology industry continues to cut back on a hiring surge that began after the onset of the Covid-19 pandemic.
The layoffs at the company, co-founded by billionaire investor and activist Peter Thiel, were announced on Tuesday by in a memo to staff by president and chief executive Dan Schulman.
“These reductions will occur over the coming weeks, with some organisations impacted more than others,” Mr Schulman said.
“Change can be difficult — particularly when it includes valued colleagues and friends departing. We will face this head-on together, drawing on the unparalleled scale of our global platform, the strategic investments we have made to strengthen our core capabilities, and the trust and loyalty of our customers.”
Mr Schulman said the company had worked over the past year to adapt to “the challenging macroeconomic environment”.
Despite reducing its costs and recalibrating resources to focus on core strategic priorities, it still needs to slash its headcount, he said.
PayPal's shares closed 2.32 per cent up at $81.49 at the close of trading on Tuesday. However, the company's stock has declined about 54 per cent over the past year.
While the FinTech company reported strong third-quarter results last year, with revenue increasing 12 per cent to $6.85 billion, beatings earnings estimates, it reduced its annual revenue outlook due to an expected slowdown in spending in the US.
“This will be a challenging period for our community, but I am confident we will come through it together with compassion for each other, our values at the fore and a shared commitment to the future of PayPal,” he said.
The layoffs follow similar cutbacks at Big Tech companies that have cut thousands of jobs amid rising interest rates aimed at reducing inflation and growing fears of a recession in the US.
After a hiring frenzy following the onset of the Covid-19 pandemic, as a result of the pivot to digitalisation, companies such as Spotify, Meta, Amazon, Microsoft, Twitter, IBM and Google's parent Alphabet have fired thousands of employees.
While companies in the US let go of 363,824 jobs in 2022, 13 per cent more than in 2021, the technology sector was the leading job-cutting industry last year, according to Chicago-based global employment company Challenger, Gray & Christmas.
A total of 97,171 jobs were cut in the technology sector last year, a 649 per cent increase from 2021 — the highest since the dot-com crash that began in 2000, a survey by the company showed.
This week, the International Monetary Fund changed course and raised its global economy outlook estimate for the first time in a year, projecting that the world economy will expand by 2.9 per cent this year.
The US, the world's largest economy, is now set to avoid a recession and is projected to grow 1.4 per cent in 2023, after growing 2 per cent last year and 5.7 per cent in 2021.
The US Federal Reserve raised interest rates seven times last year to curb inflation, which hit a four-decade high.
The Fed is expected to raise interest rates on Wednesday by a more moderate 25 basis points after a series of 75 bps and 50 bps increases last year, as prices have begun to ease in the world's largest economy.
GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
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BORDERLANDS
Starring: Cate Blanchett, Kevin Hart, Jamie Lee Curtis
Director: Eli Roth
Rating: 0/5
COMPANY%20PROFILE
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The years Ramadan fell in May
Our legal advisor
Ahmad El Sayed is Senior Associate at Charles Russell Speechlys, a law firm headquartered in London with offices in the UK, Europe, the Middle East and Hong Kong.
Experience: Commercial litigator who has assisted clients with overseas judgments before UAE courts. His specialties are cases related to banking, real estate, shareholder disputes, company liquidations and criminal matters as well as employment related litigation.
Education: Sagesse University, Beirut, Lebanon, in 2005.
SCHEDULE
December 8: UAE v USA (Sharjah Cricket Stadium)
December 9: USA v Scotland (Sharjah Cricket Stadium)
December 11: UAE v Scotland (Sharjah Cricket Stadium)
December 12: UAE v USA (ICC Academy Oval 1)
December 14: USA v Scotland (ICC Academy Oval 1)
December 15: UAE v Scotland (ICC Academy Oval 1)
All matches start at 10am
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
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Biog
Mr Kandhari is legally authorised to conduct marriages in the gurdwara
He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada
Father of two sons, grandfather of six
Plays golf once a week
Enjoys trying new holiday destinations with his wife and family
Walks for an hour every morning
Completed a Bachelor of Commerce degree in Loyola College, Chennai, India
2019 is a milestone because he completes 50 years in business
COMPANY PROFILE
Name: Lamsa
Founder: Badr Ward
Launched: 2014
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Based: Abu Dhabi
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The Gentlemen
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Three out of five stars
SPECS
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Reading List
Practitioners of mindful eating recommend the following books to get you started:
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How to Eat by Thich Nhat Hanh
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How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
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Company%20profile
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Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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THREE
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How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.