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Here's why PayPal is laying off its staff

PayPal has taken decisive steps in ensuring it maintains global standards and customer satisfaction

Events of the past few days have been overshadowed by recent developments from PayPal Holdings Inc., as the payment giant has laid off a number of its staff at San Jose headquarters. The American multinational financial technology company has cited issues around operational efficiency and meeting customer needs to be the reason behind its latest mass exodus. With over 26,000 employees worldwide, San Jose headquarters houses about 4000 of its employee population.

Source: PayPal

PayPal has struggled to meet Wall Street's (American Stock market) expectations in its forecast. Ultimately, leading to a drop in its stock value, this is why the company has set its gaze on restructuring and refocusing the company. By laying off employees, PayPal hopes to restructure its business priorities in a bid to enhance customer satisfaction and growth. The company will seek to hire and fill up these spaces as it remains committed to investing in San Jose and evolving in meeting the standards and demands of the global stock market.

Economic uncertainties, Inflation, and the crisis between Russia and Ukraine have been the major challenges to the company's business. Subsequently, PayPal will look to rise above these challenges through strategic planning and hiring. The job cuts will mostly affect managers, engineers, and directors taking effect from April 13 and May 27 respectively.

The United States of America in focus:

Population: 329.5 million in 2020 as compared to 328.3 million in 2019

GDP: $20.94 trillion compared to $21.43 trillion in 2019

GDP per capita: $63,543 in 2020 compared to $65,279 in 2019