As the world economy deteriorates, PayPal eliminates 2,000 Job positions

As the latest major IT company to cut costs, PayPal is eliminating almost 2,000 jobs, or 7% of its workforce.

The online payments provider claims that because of "the tough macro-economic climate," it was compelled to make the choice. Following tens of thousands of layoffs by industry titans in only the past month, PayPal made its announcement.

The parent firm of social media network Snapchat, Snap, issued a similar warning on Tuesday, estimating a 10% drop in revenue for the three months ending in March. Snap's shares plummeted by about 15% in extended trading in New York following the announcement.

Amazon said at the beginning of this year that it will be laying off more than 18,000 employees due to "the uncertain economy" and a spike in hiring during the pandemic. Earlier this month, Microsoft and Alphabet both announced job losses of up to 10,000 and 12,000 respectively. The massive Swedish music streaming company Spotify said this week that it would let off 6% of its around 10,000 workers, citing the need to increase productivity. Advanced Micro Devices (AMD), a US computer chip manufacturer, on Tuesday reported a 98% decline in net income for the final three months of 2022. This is another indication of the recession in the technology sector.