PayPal plans to reduce its workforce by 7%, which will affect around 2,000 employees, as a response to the current economic slowdown.
Financial analysts are warning that PayPal will need to cut more costs, with payment volumes expected to shrink as customers prepare for a downturn.
PayPal's announcement is not unique, as other fintech firms, big tech firms and Wall Street companies have also executed layoffs to reduce expenses.
Though PayPal has made progress in improving its cost structure, the company still needs to focus on its core strategic priorities.
In line with analyst expectations, PayPal has announced it will lay off 7% of its global workforce.
By cutting costs the payments company hopes to survive the economic slowdown, which has also affected purchasing power due to high inflation.
PayPal CEO Dan Schulman acknowledged that while the company has made some significant progress, they still have more work to do.
PayPal's decision comes after a year of pressure, as surging inflation and recession fears limited digital payments and e-commerce spending.
The move may not have been entirely voluntary, as some analysts suggest that the company is under pressure from activist investor Elliott Investment Management, which took a stake in PayPal last year.
Nonetheless, the company's shares were up about 2% in afternoon trade.