PayPal will reduce its headcount by 2,000 workers, becoming the latest tech giant to unleash layoffs in the face of a possible recession.
The layoffs represent roughly 7 percent of PayPal’s global workforce. “Over the past year, we made significant progress in strengthening and reshaping our company to address the challenging macro-economic environment while continuing to invest to meet our customers’ needs,” PayPal President and CEO Dan Schulman wrote in a message to employees. “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.”
Over the past few months, some of the most prominent companies in tech—including Google, Meta, Twitter, and IBM—have initiated layoffs and cut in-office perks. This week, Intel took things one step further and announced it would slice at employees’ salaries, bonuses, and 401(k) match, as well. Leaders at these companies insist they must streamline operations and reduce headcount in a new era of economic uncertainty, especially after the exuberant spending and rapid hiring of the past few years.
It’s important to keep in mind, however, that the hiring patterns of the biggest tech giants don’t necessarily reflect the broader tech industry. The overall unemployment rate for tech occupations dipped to 1.8 percent in December, lower than the national unemployment rate of 3.5 percent, according to the latest analysis of U.S. Bureau of Labor Statistics (BLS) data by CompTIA. “Another wave of positive tech employment data speaks to the many moving parts of a complex labor market,” Tim Herbert, chief research officer at CompTIA, wrote in a statement accompanying the data. “Despite the layoffs there continues to be more employers hiring tech talent than shedding it.”
If you’re anxious about potential layoffs at your own company, keep in mind that executives usually target employees based on clear criteria, including performance. By volunteering for cutting-edge projects, keeping your skills up-to-date and staying visible with your manager, you can potentially boost your chances of survival even in tough times.
