27.4 C
Accra
Thursday, November 21, 2024
BusinessPayPal lays off 2,000 employees over harsh global economy

Date:

PayPal lays off 2,000 employees over harsh global economy

In an effort to reduce costs, PayPal is laying off about 2,000 employees, or 7% of its workforce.

The company that handles online payments claims that it was forced to make the choice due to “the challenging macro-economic environment.”

Following tens of thousands of layoffs by major technology companies in the past month alone, PayPal made its announcement.

Amazon, Microsoft, and Alphabet, the parent company of Google, have all announced significant job cuts this year.

“We must continue to change as our world, our customers, and our competitive landscape evolve,” PayPal’s chief executive Dan Schulman said in a statement.

Also on Tuesday, Snap – the parent company of social media platform Snapchat – warned that revenue for the three months to the end of March could fall by as much as 10%.

“We anticipate that the operating environment will remain challenging, as we expect the headwinds we have faced over the past year to persist throughout Q1,” the company told investors.

After the announcement, Snap’s shares fell by almost 15% in extended trade in New York.

At the start of this year, Amazon announced it planned to cut more than 18,000 jobs because of “the uncertain economy” and rapid hiring during the pandemic.

Also this month, Alphabet said it would shed 12,000 jobs, while Microsoft said up to 10,000 employees would lose their jobs.

Last week, Swedish music-streaming giant Spotify said it would cut 6% of its about 10,000 employees, citing a need to improve efficiency.

In another sign of the technology industry slowdown, US computer chip maker Advanced Micro Devices (AMD) on Tuesday reported a 98% fall in net income for the last three months of 2022.

The company also said it expects revenue to drop by as much 10% in the current quarter.

However, the figures were better than many investors had expected and AMD’s shares rose after the announcement.

In Asia on Wednesday, the world’s second-biggest memory chip maker, SK Hynix, posted its largest quarterly loss on record.

The South Korean company reported a worse-than-expected 1.7 trillion won ($1.4 billion; £1.1 billion) loss for the last three months of 2022, as sales fell by 38%.

The firm pointed to falling computer chip prices and joined rival technology giants in warning that it expects an industry-wide downturn to worsen in the coming months, before recovering later in the year.

It came after rival Samsung Electronics on Tuesday reported its lowest quarterly profit in eight years.

[forminator_poll id="710479"]

Latest stories

Denis Gyeyir calls for policy reforms to meet growing need for transition minerals

The Natural Resource Governance Institute (NRGI) is advocating for...

EC burns ballot papers for Ahafo and Volta Regions due to errors in serialization

The Electoral Commission (EC) has destroyed defective ballot papers...

Ghanaians lack awareness on spotting terror threats – Security Analyst warns

Security Analyst Dr. Vincent Azumah has raised concerns about...

Rice farmers yet to reap promised benefits PFJ phase 2

The President of the Ghana Rice Inter-Professional Body (GRIB),...

Let’s campaign peace, not conflict – NCCE pleads with politicians

A member of the National Commission for Civic Education...

Related stories

Denis Gyeyir calls for policy reforms to meet growing need for transition minerals

The Natural Resource Governance Institute (NRGI) is advocating for...

Rice farmers yet to reap promised benefits PFJ phase 2

The President of the Ghana Rice Inter-Professional Body (GRIB),...

CBG achieves historic GHS1bn revenue in Q3 2024

Consolidated Bank Ghana Ltd. (CBG) has reached a remarkable...

PPI ascends from 30.5% in September to 33.0% in October 2024 – GSS

Fresh data from the Ghana Statistical Service (GSS) indicates...

PPI hits 33.0% in October through mining and industrial sectors

Ghana’s Producer Price Inflation (PPI) rate has surged to...

Power sector in jeopardy as ECG fails to settle $259m debt

The power sector in Ghana is facing a serious...