PayPal has reportedly started laying off employees this week from its offices in Chicago, Omaha, Nebraska and Chandler, Arizona, in an effort to reduce its spending. The financial technology company is also planning to shut down its San Fransisco office, but will not freeze its hiring, according to TechCrunch.
83 workers at PayPal were impacted by the latest decision. Last month the company also announced plans to close its office in San Fransisco. A spokesperson from the company told TechCrunch that PayPal is “constantly evaluating how we work to ensure we are prepared to meet the needs of our customers and operate with the best structure and processes to support our strategic business priorities as we continue to grow and evolve.”
The company has been struggling to meet its profit goals, lowering its full-year profit outlook from between $4.60 to $4.75 on a per share basis to $3.81 and $3.93. The company’s Chief Executive Officer Dan Schulman said that it was hard to predict the spending habits of consumers on e-commerce platforms as people emerge from the pandemic lockdown, making 2022 a difficult year to forecast, according to Reuters. PayPal also cut ties with its former parent company eBay in June of last year, and eBay has been transferring its payments away from the financial platform since then.
As a result, the company is looking to cut back on its spending. PayPal’s spending has increased by a measly 15% in the first quarter of the year to $323 billion, marking the smallest increase in the past five years for the company, according to Bloomberg.