Fintech giant PayPal is set to reduce its global workforce by nine percent, impacting approximately 2,500 jobs, as part of a strategic move to enhance efficiency and drive profitable growth, according to a letter from CEO Alex Chriss.

In a letter addressed to the company’s employees, newly appointed CEO Chriss outlined the decision to streamline operations by implementing both direct staff cuts and the elimination of open positions throughout the year. Affected employees are expected to receive notifications by the end of the week.

“We are doing this to right-size our business, allowing us to move with the speed needed to deliver for our customers and drive profitable growth,” wrote Chriss in the letter, emphasising the need for agility in adapting to market demands.

Chriss, who took on the role in November, had previously expressed intentions to increase revenue beyond transaction-related volumes and committed to making the fintech firm more agile by reducing its cost base.

Last week, PayPal announced the launch of new AI-driven products and a one-click checkout feature. The move towards innovation comes amid increasing competition and market dynamics in the fintech sector.

In a parallel development, rival company Block, led by Twitter co-founder Jack Dorsey, has also commenced job cuts as part of its previously disclosed plans to reduce headcount and control costs, according to sources.

The technology industry, overall, witnessed over 260,000 job losses in 2023 as reported by the Layoffs.fyi website, which tracks technology industry job cuts.

In the past month alone, nearly 100 tech firms, including Meta, Amazon, Microsoft, Google, TikTok, and Salesforce, have collectively announced 25,000 job cuts.