PayPal Employees Face Layoffs in Nebraska and Arizona
America’s biggest digital payments company, Paypal Holdings Inc (NASDAQ:PYPL), is reported to be laying off employees at two of its locations as part of its restructuring plan announced earlier in the year.
It has been confirmed that PayPal is laying off a number of employees at its offices in Chandler, Arizona, as well as in La Vista, Nebraska. At both locations, the actual number of affected employees and the nature of their job functions remain undisclosed at this point.
A spokesperson has, however, confirmed that the layoffs are “targeted reductions” that do not affect any specific business unit, but are being carried out as part of the company’s broader restructuring initiative announced at the beginning of the year.
As of the end of 2016, the San Jose, California-based company employed a workforce of about 10,200 employees within the country.
PayPal spokesperson Justin Higgs reiterated the company’s commitment following the layoffs. He wrote in an e-mailed statement, “PayPal remains committed to the Omaha area and our offices in La Vista as we continue to strive to deliver great products and services for our customers through area employees.”
Higgs also said, “We continually evaluate our structure, processes and resource allocation as we work to ensure that the company is supporting our employees in their ability to collaborate effectively, produce innovative products and service our customers.”
The layoffs are part of the small-scale restructuring that the company disclosed in its earnings conference call earlier this year. The Chief Financial Officer of PayPal, John Rainey, said in April that the company had plans to cut some of its staff in a restructuring initiative that would affect less than three percent of its global workforce. Rainey said that the company planned to save about $75.0 million in annual costs as part of the plan.
Despite having beaten the market’s earnings estimates, PayPal is continuing to curtail its costs in order to stay ahead of the curve in the online payments industry, which is rife with cutthroat competition. The company is also forming partnerships left, right, and center to maintain its leadership in the digital payments space.
“PayPal laying off some employees at Chandler office,” AZ Central, August 01, 2017.
“‘Targeted layoffs’ at Omaha area’s PayPal office,” KETV Omaha, August 01, 2017.
“PayPal offers positive outlook, beats expectations,” Reuters, April 26, 2017.