The Economic slowdown is affecting everyone, and big tech payment giants like PayPal, Stripe, and others are sounding the alarm and making cuts to navigate through the rough waters ahead. Stripe announced that it is cutting 14% of its workforce. Stripe is looking to cut their operating costs and META (Facebook) is laying off 11,000 employees. It seems that every other technology company whether in the payments industry or not, are bracing for an even bigger economic slowdown than many expected.
PayPal in announcing third-quarter results Thursday, provided a view of the holiday shopping season and demand next year in the context of its performance. They warned that e-commerce shopping for the holidays is getting a later start this year than in 2021, as online purchases drop from a burst of activity triggered by the COVID-19 pandemic’s impact in the past two years. PayPal is leaning on their relationships with Tech Giants like Apple and Amazon where customers will be able to use their PayPal and Venmo branded cards in the digital wallet provided through Apple phones and in stores in the first half of next year. Stripe grew quickly in 2020/21 as increased e-commerce super-charged its business, but they over-hired to respond to the demands of the time, and are now having to cut costs as well. As we predicted before, inflation and higher interests rates are causing havoc in every business, and this recession will last way into the next year. It’s time to look at how your operational costs can be trimmed, look for ways to save and keep your business safe from these troubling economic times. We can help.