Payment technology giant, Paypal is set to cut 2,000 jobs from its global workforce over the coming weeks. This was confirmed in a statement by the president and CEO Dan Schulman to employees on Wednesday.

The layoffs will account for about 7% of the company's total headcount. It was a "hard decision to make", Schulman said, continuing that the payment company needed more work to be done to “right-size” costs and focus resources on priority areas.

In November 2022, PayPal had cut its annual revenue growth forecast with slowing e-commerce trends pushing it to be prudent in its outlook for the holiday period. Affected employees will be provided with generous packages, access to consultation, and support through their transitions, he added.

Paypal now joins the growing list of tech companies that have gone the layoff route this past January to cut operational costs amid the current economic downturn.

Tech companies including Microsoft, Alphabet, SAP, IBM, Spotify, Amazon, Philips and Salesforce have either confirmed plans or gone ahead to reduce their workforce number this year alone amid a deteriorating economic climate in the tech industry.