PayPal Holdings Inc. stated it is going to minimize 2,000 staffers because it contends with a macroeconomic slowdown that’s weighed on the agency’s enterprise in current quarters.

The cuts, which is able to have an effect on about 7% of staff, will happen within the coming weeks, Chief Executive Officer Dan Schulman advised staff in a memo.

“While we have made substantial progress in right-sizing our cost structure, and focused our resources on our core strategic priorities, we have more work to do,” Schulman stated.

PayPal’s inventory has been battered by the slowdown in progress in funds quantity on its platform after the pandemic started to recede. In response, the corporate has vowed to scale back bills — together with via job cuts and the shuttering of places of work throughout the nation.

Those strikes ought to have helped the corporate notch $900 million in financial savings final yr and no less than an extra $1.3 billion in 2023, Schulman has stated. The 65-year-old CEO has been vocal about his plans to enhance his agency’s working leverage — or the flexibility to develop income quicker than bills.

PayPal shares jumped 1.9% to $81.14 at 3:55 p.m. in New York. The inventory has climbed 14% this yr, outpacing the 9% advance of the S&P 500 Information Technology Index.

PayPal — like many different so-called pandemic darlings — noticed headcount swell when the virus pressured governments world wide to situation lockdown orders, spurring customers to do extra purchasing on-line. Now, as these orders have lifted and provide chains stay beneath stress, customers have returned to in retailer purchasing in droves.

PayPal is predicted to report that funds quantity on its many platforms climbed to $1.4 trillion final yr, in accordance with analyst estimates compiled by Bloomberg. While that’s a 9.6% improve from a yr earlier, that might nonetheless mark the bottom stage of progress within the agency’s historical past as a public firm, the information present.

“Over the past year, we made significant progress in strengthening and reshaping our company to address the challenging macro-economic environment while continuing to invest to meet our customers’ needs,” Schulman stated. “We must continue to change as our world, our customers, and our competitive landscape evolve.”