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.
Why are asylum seekers being housed in hotels?
The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.
A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.
Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.
The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.
When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.
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UAE currency: the story behind the money in your pockets
Benefits of first-time home buyers' scheme
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%E2%80%98FSO%20Safer%E2%80%99%20-%20a%20ticking%20bomb
%3Cp%3EThe%20%3Cem%3ESafer%3C%2Fem%3E%20has%20been%20moored%20off%20the%20Yemeni%20coast%20of%20Ras%20Issa%20since%201988.%3Cbr%3EThe%20Houthis%20have%20been%20blockading%20UN%20efforts%20to%20inspect%20and%20maintain%20the%20vessel%20since%202015%2C%20when%20the%20war%20between%20the%20group%20and%20the%20Yemen%20government%2C%20backed%20by%20the%20Saudi-led%20coalition%20began.%3Cbr%3ESince%20then%2C%20a%20handful%20of%20people%20acting%20as%20a%20%3Ca%20href%3D%22https%3A%2F%2Fwww.google.ae%2Furl%3Fsa%3Dt%26rct%3Dj%26q%3D%26esrc%3Ds%26source%3Dweb%26cd%3D%26ved%3D2ahUKEwiw2OfUuKr4AhVBuKQKHTTzB7cQFnoECB4QAQ%26url%3Dhttps%253A%252F%252Fwww.thenationalnews.com%252Fworld%252Fmena%252Fyemen-s-floating-bomb-tanker-millions-kept-safe-by-skeleton-crew-1.1104713%26usg%3DAOvVaw0t9FPiRsx7zK7aEYgc65Ad%22%20target%3D%22_self%22%3Eskeleton%20crew%3C%2Fa%3E%2C%20have%20performed%20rudimentary%20maintenance%20work%20to%20keep%20the%20%3Cem%3ESafer%3C%2Fem%3E%20intact.%3Cbr%3EThe%20%3Cem%3ESafer%3C%2Fem%3E%20is%20connected%20to%20a%20pipeline%20from%20the%20oil-rich%20city%20of%20Marib%2C%20and%20was%20once%20a%20hub%20for%20the%20storage%20and%20export%20of%20crude%20oil.%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3EThe%20%3Cem%3ESafer%3C%2Fem%3E%E2%80%99s%20environmental%20and%20humanitarian%20impact%20may%20extend%20well%20beyond%20Yemen%2C%20experts%20believe%2C%20into%20the%20surrounding%20waters%20of%20Saudi%20Arabia%2C%20Djibouti%20and%20Eritrea%2C%20impacting%20marine-life%20and%20vital%20infrastructure%20like%20desalination%20plans%20and%20fishing%20ports.%C2%A0%3C%2Fp%3E%0A
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Mohammed bin Zayed Majlis
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